Q.: Can employees change their FSA election mid-year?
A.: Not without a qualified life event. Once an employee makes a Flexible Spending Account (FSA) election, it cannot be changed until the next plan year unless the employee experiences a qualifying life event such as marriage, divorce, birth of a child, or a change in employment status that affects eligibility. Employers should remind employees to plan their FSA contributions carefully during open enrollment, since unused funds may be forfeited at year-end depending on the plan’s grace period or carryover rules.
Benefit Allocation Systems (BAS) provides best-in-class, online solutions for: Employee Benefits Enrollment; COBRA; Flexible Spending Accounts (FSAs); Health Reimbursement Accounts (HRAs); Leave of Absence Premium Billing (LOA); Affordable Care Act Record Keeping, Compliance & IRS Reporting (ACA); Group Insurance Premium Billing; Property & Casualty Premium Billing; and Payroll Integration.
MyEnroll360 can Integrate with any insurance carrier for enrollment eligibility management (e.g., Blue Cross, Blue Shield, Aetna, United Health Care, Kaiser, CIGNA and many others), and integrate with any payroll system for enrollment deduction management (e.g., Workday, ADP, Paylocity, PayCor, UKG, and many others).
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.
