We will study this further and if determined to be beneficial for our employees, (which it looks like it will be) we will most likely allow this increased flexibility during the renewal period that is opening.
From Employee Benefits Corporation:
One of the largest barriers to health care flexible spending account (FSA) adoption, the "use-it or lose-it" rule, has effectively been eliminated. The US Department of the Treasury and Internal Revenue Service, yesterday, changed the 30-year old policy by adding an alternate opportunity for you to offer a carryover option to your employees.
There has always been the option to include a two and a half month grace period to spend down account funds, but now you can choose to allow your employees to carryover up to $500 to the next plan year without affecting their limit of $2,500 (i.e. Bob could choose to contribute $2,500 in 2014, carryover $500 from 2013, giving him $3,000 to use during the 2014 plan year). It's an "either or" type of situation though, so you will need to choose between the two options; you cannot elect both.
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