Q: What are some end of year suggestions for employees who still have funds in their health FSA?
A: Health FSAs do not allow employees to stockpile items, but there are several smart ways to use remaining funds before the plan year ends. Employees can schedule routine or preventive care appointments, purchase eligible over-the-counter items such as bandages, sunscreen, thermometers and many common medicines, refill prescriptions, or update glasses or contact lenses. If your plan offers a carryover or grace period, remind employees that these features provide extra time or allow a small balance to move into the next plan year, but unused amounts above those limits are forfeited. Encouraging employees to review their current balance and plan upcoming expenses now can help them make the most of their FSA dollars.
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This article is for informational purposes only and is not intended as legal, tax, or benefits advice. Readers should not rely on this information for taking (or not taking) any action relating to employment, compliance, or benefits. Always consult with a qualified professional before making decisions based on this content.
