Last month, Congressmen John Larson, D.Conn.,and Charles Boustany, R-La., introduced the Medical Flexible Spending Account Improvement Act (H.R. 1004), a bill that would end the unpopular flexible spending account (FSA) "use it or lose it" provision and instead allow FSA participants to withdraw and pay taxes on any remaining funds in their accounts at the end of the plan year.

An end to the forfeiture rule, from my perspective, would be a win-win for plan participants and employers alike. Let me tell you why.

It's no secret that "use it or lose it" is a big reason many employees pass on participating in their workplace FSAs each year. It seems like every time a personal finance reporter writes about the advantages of utilizing an FSA – saving up to 40 percent on your routine out-of-pocket health care expenses – it's followed by a large warning sign about how you must use it or lose it. What doesn't get reported is that the average plan participant spends all the money in their account by July – just seven months into the plan year.