Do You Have a Balance in Your FSA? |
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May 27, 2014, Volume 60, No. 35 |
If you have an unused balance in your Health Care or Dependent Care Flexible Spending Account (FSA), you need to be aware of some important IRS regulations and deadlines. The money you contribute to your FSA during each plan year can only be used for expenses incurred within certain dates, as shown below. Keep in mind the expenses must be incurred while you’re actively participating in the accounts. For more details on FSAs, including listings of eligible expenses and instructions on how to file a claim, visit https://www.hr.upenn.edu/myhr/benefits/health/fsa
Health Care FSA
If you have a balance in your Health Care FSA at the end of the plan year, up to $500 of unused funds will automatically roll over to the next plan year. Any balance above $500 will be forfeited. Expenses must be incurred by June 30, 2014 to be applied to your 2013-2014 plan year account, and those claims must be submitted by September 30, 2014.
Plan Year |
Account Type |
Time Frame to Incur Expenses |
Balance Rollover |
Claim Submission Deadline |
July 1, 2013 –
June 30, 2014
(current plan year) |
FY13 Health Care |
July 1, 2013 –
June 30, 2014 |
Up to $500 automatically rolls over* |
Sept. 30, 2014 |
July 1, 2014 –
June 30, 2015
(new plan year) |
FY14 Health Care |
July 1, 2014 –
June 30, 2015 |
Up to $500 automatically rolls over* |
Sept. 30, 2015 |
*If you switched medical plans to the Aetna High Deductible Health Plan (HDHP) with Health Savings Account (HSA) for plan year 2014-2015, it’s important to note that you cannot participate in both a Health Care FSA and the HSA at the same time. You must incur and be reimbursed all the Health Care FSA funds in your account prior to June 30, 2014 or you will not be eligible to open an HSA during the 2014-2015 plan year. This means you will not be eligible for the Penn HSA contribution or be able to make your own contributions to the HSA for the entire plan year.
Dependent Care FSA
If you have a balance in your Dependent Care FSA, make sure you use it—or you’ll lose it. IRS regulations require you to use the full balance in your account each plan year. Otherwise you lose that unused money. However, you have an extended period of time to use up your balance each plan year. Expenses incurred through September 15, 2014 can still be applied to your 2013-2014 plan year balance, as long as the claims are submitted by September 30, 2014.
Plan Year |
Account Type |
Time Frame to Incur Expenses |
Balance Rollover |
Claim Submission Deadline |
July 1, 2013 –
June 30, 2014
(current plan year) |
FY14 Dependent Care |
July 1, 2013 –
Sept. 15, 2014 |
No rollover allowed |
Sept. 30, 2014 |
July 1, 2014 –
June 30, 2015
(new plan year) |
FY15 Dependent Care |
July 1, 2014 –
Sept. 15, 2015 |
No rollover allowed |
Sept. 30, 2015 |
Related: New Benefits Deductions Start in July
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