On October 31, 2013, the U.S. Department of Treasury and the Internal Revenue Service announced a modification to the long-standing use-it-or-lose-it rule regarding health flexible spending arrangements (FSAs).
Effective with plan years in 2014, employers will have the option to allow employees to carry over $500 in unused funds to the next plan year. In addition, for this year with plans that do not have grace periods, employers will have the option to allow employees to carry over $500 at the end of the 2013 plan year. The contribution limit remains at $2,500.
See the link below for the modification notice and fact sheet → http://www.treasury.gov/press-center/press-releases/Pages/jl2202.aspx