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YouTube video text script - Flexible Spending Arrangement Carryover Provision

HI… I’M PHYLLIS… AND I WORK FOR THE INTERNAL REVENUE SERVICE.      

IF YOU’VE AVOIDED PARTICIPATING IN A FLEXIBLE SPENDING ARRANGEMENT BECAUSE YOU’RE WORRIED THAT YOU’LL LOSE YOUR MONEY AT THE END OF THE YEAR… YOUR EMPLOYER MAY NOW OFFER A NEW OPTION THAT CAN LET YOU CARRY OVER AS MUCH AS 500 DOLLARS TO THE FOLLOWING YEAR.      

EMPLOYERS HAVE THE OPTION OF OFFERING THIS CARRYOVER PROVISION OR OFFERING A TWO-AND-A-HALF-MONTH GRACE PERIOD TO SPEND YOUR F-S-A DOLLARS INSTEAD.     

THEY CAN OFFER YOU ONE… OR THE OTHER… BUT NOT BOTH OPTIONS IN THEIR F-S-A PLAN.      

IF YOU’RE NOT SURE… ASK YOUR EMPLOYER.      

AN F-S-A IS A WORKPLACE PLAN THAT LETS YOU CHOOSE TO RECEIVE TAX-FREE REIMBURSEMENTS OF HEALTH EXPENSES… SUCH AS CO-PAYS AND DEDUCTIBLES INSTEAD OF TAXABLE PAY.        

UNDER THIS NEW OPTION… IF YOU STILL HAVE UP TO 500 UNUSED DOLLARS AVAILABLE AT THE END OF THIS YEAR AND YOUR EMPLOYER PROVIDES FOR THE FULL CARRYOVER… YOU CAN SIMPLY LEAVE THE MONEY IN YOUR F-S-A AND USE THAT MONEY FOR NEXT YEAR’S HEALTH CARE EXPENSES.       

YOU CAN FIND OUT MORE ABOUT FLEXIBLE SPENDING ARRANGEMENTS BY VISITING OUR WEBSITE AT I-R-S-DOT-GOV.  

Page Last Reviewed or Updated: 09-May-2014