Employees may now be able to use their health and dependent care expenses in their flexible spending accounts until almost a quarter of a year after the plan expires at the end of the year.

Because of a rule issued by the federal government, employers may extend the deadline for reimbursement of employees’ FSA funds up to two-and-a-half months after the end of the plan year. Previously, employees had to use these funds by the end of the year or forfeit the unspent funds.

“The new rule will give workers with FSAs more time to pay for medical and dependant care expenses and will ease the year-end spending rush prompted by the prior rule,” Treasury Secretary John Snow said.