The catch with a flexibility spending account plan is that the employee can carry forward any balance in the account at year-end to the next year.

Question

Quizplus · Accepted Answer

Most Flexible Spending Account (FSA) plans operate on a "use it or lose it" basis, meaning any unused funds at the end of the plan year are forfeited, although some plans may offer a grace period or allow a small amount to be carried over into the next year.

The Catch with a Flexibility Spending Account Plan Is That