Alert November 12, 2013

Goodwin Procter Employee Benefits Update: IRS Modifies “Use-It-Or-Lose-It” Rule for FSAs and IRS and SSA Announce 2014 Dollar Limits

A new Employee Benefits Update from Goodwin Procter’s ERISA & Executive Compensation Practice discusses (1) the modification by the Internal Revenue Service (the “IRS”) of its “use-it-or-lose-it” rule for health flexible spending arrangements so that, subject to implementing plan amendments and employee notifications, up to $500 of unused amounts may be carried forward into the following year and (2) the announcement by the IRS and Social Security Administration of cost-of-living adjustments for 2014 to certain dollar limits for tax-favored retirement and benefits plans, and other thresholds – including for retirement plans, health savings accounts, qualified transportation benefits and the social security taxable wage base.