2015 Changes to IRA Rollovers and FSAsFeb 10, 2015


Authored by Staff Accountant, James Di Rubbio

IRA One-Rollover-Per-Year Rule
Beginning in 2015 there will be changes in the way you are allowed to make rollover contributions to your IRAs. Specifically, 408(d)(3)(B) will only allow you to make one rollover to another IRA in any 12-month period. If you have multiple IRAs, the limit works by treating your SEP, traditional, Simple IRA, and Roths as one aggregate account and counting it all as one move.  The IRS also provides you a clean start in 2015; you can rollover any account you didn’t rollover in 2014, or separated by 12-months. Additional rollovers will be taxed as ordinary income and assessed a ten percent early withdrawal fee.

Flexible Spending Accounts (FSAs)
The 2015 FSA contribution limit has been raised by $50 to $2,550. Traditionally this money has been of the “use-it or lose-it” variety, however in 2013 the IRS allowed you to carry-over $500 to 2014. The change for 2015 is for general-purpose FSAs only. Individuals who participate in a general-purpose FSA and carryover amounts to the next year, will be ineligible for the entire next plan year. The good news, if you are participating in a general purpose FSA, you may elect to have carry-over amounts converted to a limited purpose FSA in order to become “HSA eligible”.


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