Choose With Care

Employees will want to consider their FSA elections with care. The chosen salary deductions in the program will be irrevocable once a plan year has begun, unless the employee experiences a qualifying “change in status” event. The government has not yet announced what will qualify as a change in status, but for insurance purposes, events such as marriage, birth of a child or divorce commonly qualify as such events. Also, under current law, money in FSAs is “use or lose”-funds unspent at the end of a plan year cannot be rolled over into the next year and are forfeited.