U.S. workers can carry over $500 of health spending accounts: Treasury

Americans who use flexible spending accounts (FSAs) for healthcare costs may now be able to carry up to $500 of expiring money into the next year, the U.S. Treasury said on Thursday. An FSA allows individuals to set aside as much as $2,500 a year in pretax income for healthcare costs. In 2005, the Internal Revenue Service began allowing companies to offer their workers a 2.5 month grace period through mid-March during which they could use up any money that was left over. Now, an employer that sponsors an FSA can choose, as an alternative to that grace period, to allow its employees to carry over up to $500 to use during the entire following year.

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