Question of the Week

Q.- We have a health FSA with a carryover. We don’t want to allow participants to use the carryover money anymore. Can we get rid of the carryover?

A.- An employer may amend its plan to eliminate the carryover provision, but the change must be communicated to employees before the end of the plan year. Once the plan year has ended, the carryover relating to that plan year should not be removed.

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