As we shared with you on October 31, the U.S. Treasury announced some major modifications to the "Use It Or Lose It" rule, which required any leftover balance in a Healthcare Flexible Spending Account (FSA) to be forfeited at the end of the plan year. Under the new rule, employers have the option to offer their participants a carryover of up to $500 in lieu of grace period. This option is available to you as early as for the 2013 plan year.
Since the rule change was announced, thousands of our employer Clients have consulted with WageWorks to understand their options, and many of them have amended their plans already. This allows their employees to take advantage of the carryover into 2014, and have a better basis to select their 2014 benefits during the ongoing open enrollment season. At the same time, employees have been inundating our call centers to find out if their employers are going to offer the carryover.
Based on this overwhelming demand by both employers and employees, we made it a priority to make this change as easy and seamless as possible for our Clients. You can simply complete this plan amendment document, and your plan set-up will be updated to reflect a carryover starting in plan year 2013 or 2014, based on your preference.
For additional questions, please visit our Resource Center, which features:
Thank you for your partnership, and please be assured that our Relationship Management team is prepared to guide you through this change.