You may have heard recently about a federal announcement giving Flexible Spending participants the option to carry over up to $500 of their unused balance to use for eligible expenses during the next plan year.
But after careful review, we’ve decided to maintain our current plan design that provides a two-and-a-half-month grace period for 2013 Flexible Spending balances not used by December 31, 2013. So if you’re participating in Flexible Spending, this allows you to spend your entire unused balance—rather than just $500—for services received through March 15 of the coming year.
Keep in mind, the federal notice made it clear that sponsoring employers could allow either the $500 carryover or the two-and-a-half-month grace period, but not both. So in the best interest of the majority of our Flexible Spending participants, we’ll maintain the annual grace period for now.
We’ll work closely with our sponsoring employers to determine how Flexible Spending should be structured in the future. If you have any questions about this important information, please contact us.