IRS extends deadline to use FSAs

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Wednesday, June 15, 2005

IRS extends deadline to use FSAs

By JEFF BROWN
Knight Ridder Newspapers

Good news for people who have out-of-pocket medical expenses or spend big bucks on day care: The use-it-or-lose-it rule on flexible spending accounts has been loosened.

FSAs offered by employers let participants avoid federal income tax on money set aside for medical expenses and day care.

Previously, money in the accounts could be used only for expenses incurred in the calendar year in which it was saved. But a rule issued last month by the IRS now allows those funds to be used for expenses incurred through March 15 of the following year.

More..
http://www.ocregister.com/ocr/2005/06/15/sections/business/money_smarts/article_559512.php