The IRS allows employers to offer a 2½ month grace period at the end of their flexible spending account plan year. That grace period extends the time in which FSA participants can incur eligible expenses that can be paid with pre-tax money that was put into the account during the elected 12-month plan year. The grace period expires March 15 for calendar year plans.
With the expiration of the grace period quickly approaching, many FSA participants are running out of time to incur eligible expenses for reimbursement from their 2011 FSAs. Employees who do not incur expenses to spend down their FSA balances risk losing amounts remaining in their account(s).
How BAS Helps
BAS takes an active role in helping participants avoid the FSA “Lose-It-Blues.” BAS keeps employees aware of their FSA balance(s) through out the year by sending quarterly emails to participants. This serves as a reminder to busy employees to check their balance to avoid losing their contributions.
MyEnroll.com also provides 24/7 access to FSA account information, including remaining balance available and claims processed information.
These MyEnroll features help employees effectively manage their health care and/or dependent care FSAs within plan and IRS guidelines.
