IRS Easing Rules for Use-it-or-lose-it Rule on Flex Plans

morrisg

I have heard from time to time and just today read in Kiplinger that the IRS is easing the use-it -or lose-it rule for flex plans in that amounts unused at the year end can be carried over for 2 1/2 months and use to pay for expenses during that time. I have also heard that allowing employees to roll this money into a 401(k) is under consideration. Is anyone aware of this, if so are you aware of a source to confirm this?

Mentel

I also read about the 2 and 1/2 month extension but I didn't hear anything regarding 401k. I would like to know if and when this went into effect.