BAS Blog

Question of the Week

Written by BAS | Dec 4, 2014 1:58:43 PM

Q.- We have a calendar year FSA but our medical plan renews April 1. Can we extend our FSA this year so it lasts for 15 months? 

A.- No.  A cafeteria plan year must be 12 consecutive months, unless a short plan year is allowed. While the FSA may implement a short plan year for a valid business purpose, the plan year may not extend an additional 3 months.