A health Flexible Spending Account plan and a dependent day care Flexible Spending Account Plan can be structured to incorporate certain permissible features to help employees use their full elected annual contributions.
Grace Period
Both a health FSA and a Dependent Day Care FSA may include a grace period extension. A grace period offers employees additional time to incur eligible health and/or dependent day care FSA expenses. It may last up to two and a half months following the end of the plan year.
Carry Over
A health FSA may be structured to include a carryover feature. A carryover allows a health FSA participant to carry forward up to $500 of unused contributions to be used in the next plan year. A health flexible spending account plan may include a carryover or a grace period, but not both.
Runout Period
The run out period is a set amount of time after the end of the plan year that participants may use to submit claims. Claims may not be incurred during this time for the prior plan year, but it is an administrative period to submit claims. Both a health FSA and a dependent day care FSA may include a runout period.
MyEnroll can be configured to administer a grace period, carryover and/or runout period. Based on an employer’s specific preferences, MyEnroll.com can accommodate the use of a grace period extension of up to two and a half months. BAS can also administer a runout period of a length of the employer’s choosing. MyEnroll can also provide for a carryover for a health FSA that does not include a grace period.
To learn more about BAS’ FSA administration services, please contact your account manager or solutions@BASusa.comEndFragment
