Close Close
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards

Regulation and Compliance > Federal Regulation > IRS

Treasury Lets Reservists Take FSA Distributions

Your article was successfully shared with the contacts you provided.

Citizen soldiers who go on active duty may be able to withdraw cash from flexible spending accounts.

The Internal Revenue Service has described the rules that apply to FSAs held by activated reservists in IRS Notice 2008-82.

The notice implements the Heroes Earnings Assistance and Relief Tax Act of 2008, which changes the usual FSA “use it or lose it rule” and creates a “qualified reservist distribution” option for employers of reservists called to active duty.

The government will permit employers to let activated reservists withdraw unused FSA funds, but it will not require employers to do so, IRS officials say.


© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.