BAS Blog

Question of the Week

Written by BAS | May 26, 2022 3:45:15 PM

Q.- An employee just learned he needs a significant amount of dental work next month. He wants to put more money into his health FSA to pay for the expense. May we allow him to increase his FSA election to cover the charge?

A.- No, unless he has a mid-year change event recognized by the IRS. A health care FSA election must remain in place for the entire plan year. There are exceptions for changes resulting from mid-year life events. Having the need for dental work is not a mid-year life event that the IRS would recognize as allowing a health FSA election change.