"Use it or lose it" could be a thing of the past for health insurance flex spending accounts.
The U.S. Treasury Department announced last week it would relax a rule requiring people to use all their money in their account by the end of the year or else lose it.
The money is put into a special account before it's taxed and can be used for a number of medical costs.
Employers will now allow employees to roll over up to $500. "If you're going to have health care expenses throughout the year that have to come out of your pocket, this way you're not only saving tax dollars on them, you're increasing your take home pay and you have that money available to you when those bills occur," said Nancy Fee of 3PAdministrators.
Enrollment periods for flexible spending accounts are likely coming to an end as the new year approaches. If you're interested, check with your employer to see if this is an option and if it's not too late to join.