Flexible spending accounts (FSAs) are use-it-or-lose-it pre-tax accounts for medical costs, dependent care, or adoption expenses. Typically, funds must be spent by year end (there can be a grace period up to 2½ months). Federal law doesn’t require employers to send reminders to employees about this, but it would be a good idea to do so. California enacted a law requiring employers to provide such notice starting next year.
New blog post today! J.K. Lasser’s Small Business Taxes 2020