Don’t Forget! You can carry over up to $500 of health care FSA funds to the next plan year The U.S. Treasury Department modified its health care FSA “use-it-or-lose-it” provision to allow FSA funds to be carried over to the next plan year. How this affects your health care FSA  A maximum amount up to $500 of health care FSA funds will carry over to the new plan year o The carry-over will take place at the beginning of the new plan year o Claims submitted for the prior plan year’s expenses will still be paid from available carryover funds, if needed o  Claims from the new plan year will use any available carry-over funds, if needed Amounts over the maximum remain under the “use-it-or lose-it” rule and therefore, will be forfeited after the filing deadline for the plan year  The carry-over amount does not affect the maximum health care FSA annual election set by your plan  Even if you do not make a new health care FSA election, your funds will carry over for you to use in the new plan year, if you are still an active employee  All health care FSA funds must be used for IRS-eligible expenses Per the IRS regulations, carry-over amounts cannot be cashed out or converted to any other taxable or nontaxable benefits. For a list of eligible expenses, go to your FSA home page on umr.com.

FSA Health Carryover Announcement

of 1

Description

Free up your schedule!

Take 5 seconds to unlock