Help Your Employees Make the Most of Their FSA: Key Deadlines to Know

Helping employees make the most of their flexible spending account (FSA) starts with educating them about key deadlines that impact their benefits. These accounts allow employees to set aside pre-tax dollars for qualified health expenses, but missing important dates can mean forfeiting unused funds. As an employer, timely communication and clear resources are essential to ensure your team understands their plan and maximizes its value.

At the end of the plan year, employees may lose unused funds unless your plan includes one or both of these features:

• Grace period: A grace period is an additional period of time for employees to incur claims after the end of a plan year.
• Runout period: A runout period is a specified amount of time following the end of a plan year where employees can still submit claims for qualified health expenses incurred during the previous plan year.

If you are an EBC client, you can see if your plan includes either of these features by reviewing your My Company Plan in your online account.

• Communicate early and often. If you have a calendar year plan and offer a grace or runout period, February is a great time to remind employees about potential FSA deadlines.
• Provide information resources. Educational resources about their benefits can help employees understand their plan and how to maximize their benefits. Offer materials that explain these deadlines and highlight qualified health expenses that employees can use their funds on.

At EBC, we have a variety of resources about grace periods and runout periods that you can share with your employees. If you’re a current client, you can access the following resources in your FSA Communication Toolkit:

• Grace Period Email Template: This customizable email template goes over when FSA funds need to be used by and gives additional helpful tips.
• Runout Period Email Template: This customizable email template reminds participants to submit any outstanding claims from the previous plan year. 
• Health Care FSA FAQ: Our FAQ provides answers to commonly asked participant questions, including questions about grace periods and runout periods.
• FSA Rollover, Runout, and Grace Period Flyer: This customizable flyer breaks down the differences between these three plan features and provides helpful examples to explain how these features impact FSA deadlines.

You can access the FSA Communication Toolkit through your online account.

Encourage employees to check their FSA account balance to see if they have any remaining funds from the previous plan year. Participants can access this information in our mobile app, EBCentral, or in their online account. A little reminder now can prevent forfeited funds later.