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New carryover rule and trade-offs for employers

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Even though an employer might want to provide both a grace period and a carryover, a health FSA cannot have both a carryover and a grace period. Because of this ‘one or the other, but not both’ rule, employers must consider some trade-offs to determine whether a grace period, a carryover or neither will be preferable.”

To read the entire Lockton Compliance Services article, click here.

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