Temporary delays and rollover extensions introduced during the pandemic are expected to expire within December 2022giving account holders just six months to understand their due date and spend the remaining funds before it’s too late
NEW YORK, July 6, 2022 /PRNewswire-PRWeb/ — As Americans battle rising costs for everything from food to furniture to travel, the the 31st of December The use-or-lose date for Flexible Spending Account (FSA) funds may not be a priority. However, confusion over temporary time extensions and rollover changes introduced during the pandemic is leading to increased FSA confiscations, and this will continue if account holders do not take the time to plan ahead. Health-E-commercemother brand of FSAstore.com – the first and leading online marketplace dedicated exclusively to selling FSA-eligible products – publishes tips and reminders to improve consumer understanding so account holders can use, not lose, their precious dollars health care.
Why is this year different?
The Consolidated Credits Act 2021 has provided much-needed flexibility to FSA users during the COVID-19 pandemic, by giving employers who offer FSAs the ability to extend their normal maturity for the plan year and the balance carry forward option. These extensions — all of which were optional and offered by less than half of workplace plan sponsors — will expire in 2022, creating more confusion and possibly higher balances to spend than ever before. Delays and extensions may include:
the 31st of December expiry date for use or loss. The majority of employers who offer an FSA have a the 31st of December deadline, which means that all FSA funds must be spent before the 31st of December or they are lost to the employer. During the pandemic, employers had the option to change their deadline; however, many did not and this delay may still be true.
Grace period. Employers can choose to give employees a grace period of two and a half months (for a the 31st of December deadline, until March 15) to spend FSA funds from the previous calendar year. During the pandemic, employers have had the option to extend the grace period up to 12 months for plan years ending in 2021. This means employees can still have 2021 grace period funds that will expire on December 31, 2022in addition to their 2022 FSA dollars to consider.
Postponement of extension. Employers can allow employees to defer up to $570 (2022) in FSA funds until the next plan year. During the pandemic, employers had the option to allow employees to carry over their entire unused FSA balance to 2021 and 2022. This option also expires in 2022, so if an employee had a carryover from 2021 of their total remaining balance , those funds combined with their 2022 election could mean more funds than ever before to spend before the renewed deadline.
“Education and access to user-friendly tools are key to making the most of FSA funds, especially in times of change and economic uncertainty,” said Rachel Roll, Chief Compliance Officer for Health-E Commerce. “As the pandemic-inspired rule changes expire this year, it’s critical that consumers understand their FSA deadlines and take the time to budget for their healthcare needs over the next six months so they can get the most out of it. of their tax-free health care dollars.”
Steps to take now
To avoid losing FSA funds this year, Health-E Commerce suggests consumers take the following steps:
Check your FSA balance. Check your FSA online portal or contact your FSA administrator to confirm your remaining account balance.
Know your deadline. Confirm your FSA deadline and if your employer offers a grace period or deferral option, and know and follow the deadline.
Map out your spending for the next six months. Use a comprehensive eligibility list to map out your expenses for the rest of the year to ensure you don’t leave tax-free funds on the table due to a missed deadline.
To help consumers map their spending for the next six months, Health-E Commerce recently launched online interactive eligibility lists designed to make it easier to understand and spend tax-free healthcare dollars. The new resource can be customized to individual preferences, so account holders can shop by product, category, lifestyle or health need.
To learn more about FSA deadlines, visit FSA Learning Center on FSAstore.com.
Media contact: Barbara Taborbarbara@taborpr.com, 651-230-9192
About Health-E Commerce
Health-E-commerce is the parent brand of FSA Store, HSA store and well deserved health, a family of online marketplaces serving the more than 70 million consumers enrolled in pre-tax health and wellness accounts. The company also created benevolent milla popular line of private label health products that benefits Children’s Health Fund and allows customers to donate with every purchase. Since 2010, Health-E Commerce brands have dominated the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce plays a vital role in expanding product eligibility to important new categories in the list of eligible medical expenses.
Barbara TaborHealth-E Commerce, 651-230-9192, firstname.lastname@example.org