On October 31, 2013, the IRS issued Notice 2013-71 which contains modifications to the “Use it or Lose it” rule that required the forfeiture of any amounts remaining in a Flexible Spending Account after the close of the plan year. FSA plans will now be permitted, at the employer’s option, to allow participants to roll over up to $500 to the next plan year. Monroe Community College will allow this option beginning the 2014 plan year. This makes Flexible Spending a much more attractive option for employees, with much less risk involved. If you have already turned in your Flexible Spending Form for 2014, please feel free to complete and turn in a revised form based on this new information.
· Beginning in the 2014 plan year, MCC employees may now carry over up to $500 of Flexible Spending money into the next plan year, modifying the “Use it or Lose it” rule.
· MCC’s Open Enrollment for Flexible Spending Accounts for 2014 continues to be for the full month of November, 2013.
· If you have already turned in your Flexible Spending form for 2014, you may turn in a revised form by November 30, 2013.
Did you know:
Flexible Spending Accounts currently have a $2500 limit for Health Care expenses. If an employee holds two or more jobs (with unrelated employers), you can elect up to $2,500 under each employer’s FSA plan. If you’re married and you both work for employers that provide FSAs, each spouse can elect up to $2,500, for a total $5,000– even if you work for the same employer. The following link is to EBS-RMSCO’s web site, where you can look up eligible expenses, calculate FSA savings, and use an FSA Calculator: https://www.ebsrmsco.com/FSAExtras/
Feel free to call Karen Rheinheimer in the HR Office at 292-2113 with questions.
Human Resources Team