1. Use your tax-advantaged accounts

If your employer offers a health savings account (HSA) or flexible spending account (FSA), take full advantage. These accounts allow you to set aside pre-tax dollars for medical expenses, reducing your taxable income and helping you save money.

• HSAs are paired with high-deductible health plans (HDHPs) and roll over year after year, making them a great long-term savings tool.
• FSAs work similarly but must be used within the plan year, so plan your contributions wisely.

Use these accounts to pay for things like prescriptions, doctor visits, and even over-the-counter medications.

2. Choose in-network providers

One of the easiest ways to lower your medical bills is to see doctors and specialists in your insurance network. Out-of-network care can cost significantly more, and sometimes isn鈥檛 covered at all. Before booking an appointment:

• Check your insurance provider鈥檚 website for in-network doctors.
• Call the provider鈥檚 office to confirm they accept your insurance.

A quick search can save you hundreds or even thousands in unexpected costs.

3. Compare costs before you get care

Not all healthcare services cost the same鈥攅ven for the same procedure or medication. Prices can vary depending on the provider, location, and insurance plan. Before scheduling an appointment or filling a prescription:

• Use your insurance鈥檚 cost-comparison tool to check prices for doctor visits, imaging, and lab tests.
• Ask for the cash price鈥攕ometimes, it鈥檚 cheaper than using insurance!
• Consider urgent care or telehealth for non-emergency medical issues instead of an ER visit, which can be very costly.

A little research goes a long way in avoiding surprise medical bills.

4. Take advantage of preventive care

Most health plans fully cover preventive services, meaning you won鈥檛 have to pay anything out of pocket for:

• Annual wellness checkups
• Vaccinations
• Screenings for conditions like diabetes, cancer, and high blood pressure

By staying on top of preventive care, you can catch health issues early and avoid expensive treatments later.

5. Make the most of your prescription benefits

Prescription costs can add up quickly, but you have options to save:

• Ask for generics 鈥� They work the same as brand-name drugs but cost much less.
• Check mail-order options 鈥� Many insurance plans offer discounts for 90-day supplies of medications.
• Use discount programs 鈥� Websites like GoodRx or pharmacy savings programs can sometimes offer lower prices than insurance.
• Talk to your doctor 鈥� If a prescription is too expensive, ask if there鈥檚 a lower-cost alternative.

Cutting down healthcare costs doesn鈥檛 mean cutting corners on your health. By making small but smart decisions鈥攍ike using in-network providers, comparing prices, and leveraging benefits like HSAs/FSAs鈥攜ou can keep more money in your pocket while staying healthy.

Want to learn more about how to maximize your benefits? Subscribe to our blog!  Simply hit the 鈥淪ubscribe鈥� button above or submit your email address in the form below to subscribe to our blog.

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax and investment advisers. 

亚洲色吧 receives compensation from some of the merchants identified in its blog posts. By linking to these products, 亚洲色吧 is not endorsing these products.

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• 2027 HSA contribution limits will increase to $4,500 and $9,000 for self-only and family HSAs, respectively.
• 2027 HDHP minimum deductible and maximum out-of-pocket limits also are increasing.

Health savings account (HSA) contribution limits are on the rise again in 2027. that 2027 HSA contribution limits will increase to $4,500 for self-only HSAs and to $9,000 for family HSAs. These are increases of $100 and $250, respectively, from 2026 HSA limits.

What are the 2026 and 2027 HSA contribution limits? 

What are the 2026 and 2027 HDHP amounts/limits? 

2027 high-deductible health plan (HDHP) amounts and expense limits also increased. The 2027 HDHP minimum deductible is $1,750 for self-only coverage and $3,500 for family coverage. The maximum out-of-pocket limits for 2027 are $8,700 for self-only and $17,400 for family.

What are the 2026 and 2027 EBHRA limits?  

The excepted benefit HRA (EBHRA) limits for 2027 will also increase to $2,250.

The state of HSAs today  

shows there are nearly $174 billion in HSA assets nationwide in more than 41.7 million accounts. About 10 percent of HSAs have at least a portion of their funds invested.

When can HSA participants change their contributions?  

One of the perks of an HSA is that participants can change their contribution amount at any time! 

Who is eligible for an HSA?   

Your employees must be enrolled in an HSA-eligible health plan (or HDHP) to be eligible to participate in an HSA. 

Whose purchases can a participant spend their HSA funds on? 

An HSA participant to pay for eligible expenses for:

• Themselves
• Their spouse
• Any HSA eligible dependents claimed on their tax return
• Anyone they could have claimed as a dependent but weren’t able to

What happens when a participant contributes more to their HSA than is allowed? 

Any employer contributions, including payroll deductions made through a cafeteria plan, beyond what the IRS allows are . The participant may also be subject to a 6% excise tax on any excess contributions made to the participant鈥檚 account.聽

How do HSA catch-up contributions work?  

HSA participants who are 55 years of age or older can contribute an extra $1,000 annually. That means these HSA participants eligible for catch-up contributions have 2027 limits of $5,500 for self-only and $10,000 for family coverage.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

Copyright 漏2026 亚洲色吧. All rights reserved. The information in this document is subject to change without notice.

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There are a variety of ways you can promote mental health in the office, and one way is to provide benefits that support your employees’ needs. For example, your employees can use their health savings account (HSA) to improve their financial wellness and save money on a variety of mental health-related expenses. As part of Mental Health Awareness Month, we鈥檒l walk through the HSA eligibility of these expenses. 

Counseling

Mental counseling may qualify as an HSA-eligible expense if the counseling is as a result of a diagnosed medical condition. That means you may need to first seek a diagnosis from a doctor and get diagnosed in order to use your HSA funds on any counseling that follows. Marriage counseling, career counseling, life coaching, and parenting counseling do not qualify as HSA expenses. 

Psychoanalysis

Psychoanalysis is as 鈥渁 set of psychological theories and therapeutic methods which have their origin in the work and theories of Sigmund Freud.鈥� It鈥檚 commonly used to treat anxiety, phobias, panic attacks, and a variety of other mental health needs. Psychoanalysis will qualify for HSA funds if it鈥檚 being provided for medical treatment and not just benefit an individual鈥檚 general health. 

Therapy or psychological care

Your employees could be increasingly reaching out for therapy or psychological care for any number of reasons. Like with psychoanalysis, therapy or psychological care qualifies for HSA dollars only if provided for medical care and not for the general improvement of mental health, stress relief, or personal enjoyment.

Would you like to learn more about emerging trends surrounding mental health in the workplace? Check out this episode of . 

Service animal

Animals play a critical role in mental health. Common examples include psychiatric service dogs and emotional support animals. If an individual can show that he or she is using a service animal primarily for medical care to alleviate a mental disease or illness, then expenses for buying, training, and maintaining a service animal may be eligible for HSA funds if the expenses would not have been paid for if not for the defect or illness.

Prescription/OTC meds

Employees with mental illness may depend on . A variety of over-the-counter drugs and prescription medications are available for purchase with HSA funds. 

Acupuncture

In some countries and culture, acupuncture is counted on as for a variety of mental health issues. Fortunately, acupuncture is also an HSA eligible expense when used for medical care. 

Sleep deprivation treatment

Stress can lead to a lack of sleep, which will have a profound impact on your employees鈥� mental wellness. One study found that chronic sleep problems of patients in a typical psychiatric practice. Sleep deprivation treatment may help alleviate mental health symptoms and is HSA eligible.

Telemedicine visits

At the start of the pandemic, by more than 1000% in March 2020 and 4000% in April 2020, according to one study. Like many changes during the pandemic, it鈥檚 popularity could last even after the pandemic is behind us. HSAs do cover medical practitioners’ fees for telemedicine.

And don’t forget about investing!

With money being the number one factor negatively affecting mental health, HSAs are a great tool for investing and retirement planning. In addition to investment capability, all HSA funds carry over from year to year, so participants can use these accounts to build a balance for their long-term healthcare needs. 

Would you like to learn more about how participants can lean on their HSA to plan for retirement? Get your free guide here.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel. 

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1. Offer and promote tax-advantaged accounts

Encourage employees to take full advantage of tax-free savings accounts like:

• Health savings accounts (HSAs): Available with high-deductible health plans, HSAs allow employees to save pre-tax dollars for medical expenses. Contributions roll over year after year, helping employees build long-term savings.
• Flexible spending accounts (FSAs): FSAs let employees use pre-tax dollars for eligible healthcare expenses, lowering taxable income and providing immediate savings.
• Health reimbursement arrangements (HRAs): Employers can contribute funds for employees to use toward qualified medical expenses, reducing their out-of-pocket burden.

Make sure employees understand how these accounts work by offering clear education, tools, and resources.

2. Educate employees on smart healthcare choices

Many employees overspend on healthcare simply because they don鈥檛 know about cost-saving options. Employers can:

• Encourage telehealth visits for routine and non-emergency care, which are often more affordable than in-person visits.
• Promote generic medications as a cost-effective alternative to brand-name prescriptions.
• Teach employees how to compare costs for procedures, lab tests, and prescriptions by using transparency tools or apps.
• Explain the benefits of in-network providers to avoid higher out-of-pocket costs.

Providing these insights through benefits communication campaigns, webinars, or one-on-one guidance can help employees make more informed choices.

3. Use preventive care and wellness programs

Preventive care can reduce long-term healthcare costs by catching health issues early. Employers can:

• Offer free or low-cost annual physicals, screenings, and vaccinations through company-sponsored health plans.
• Provide wellness incentives for activities like gym memberships, smoking cessation, or weight management programs.
• Support mental health initiatives, such as employee assistance programs (EAPs) or access to therapy sessions.

By prioritizing wellness, employees can avoid costly medical interventions down the road.

4. Encourage cost-effective healthcare plan usage

Help employees optimize their health plan by:

• Providing decision-support tools that compare different health plans and estimate costs based on usage.
• Offering contributions or employer matches to HSAs to offset high deductibles.
• Hosting benefits education sessions during open enrollment and throughout the year to reinforce smart plan usage.

Many employees don鈥檛 fully understand their healthcare benefits, so ongoing education can help them maximize their coverage.

5. Negotiate better healthcare options

Employers have the ability to negotiate benefits that can help reduce employee healthcare costs, such as:

• Partnering with healthcare providers to offer direct primary care or bundled pricing for certain procedures.
• Adding supplemental benefits like accident or hospital indemnity insurance to help cover unexpected medical expenses.

By working with benefits providers to secure cost-effective solutions, employers can ease the financial burden on employees.

High healthcare costs don鈥檛 have to be an inevitable struggle for employees. By offering the right benefits, providing clear education, and encouraging smarter healthcare choices, employers can make a real difference in their employees鈥� financial wellness.

Want to learn more about how to support your employees? Subscribe to our blog for our latest tips! Simply hit the 鈥淪ubscribe鈥� button above or submit your email address in the form below to subscribe to our blog.

The information in this blog post is for educational purposes only. It is not legal, tax or investment advice. For legal, tax or investment advice, you should consult your own legal counsel, tax and investment advisers. 

亚洲色吧 receives compensation from some of the merchants identified in its blog posts. By linking to these products, 亚洲色吧 is not endorsing these products. 

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Who has to offer COBRA?

If you employ at least 20 people, then you鈥檙e likely required to provide COBRA to your qualified beneficiaries. A few factors to consider include:

• Your employee count of 20 must be reached on more than 50% of business days in the previous calendar year.
• Full-time and part-time employees are counted, although part-time employees count as a fraction of full-time employees, and the number of hours the part-time employee works.
• State and local governments are among those that must offer COBRA if the above requirements are met. The law doesn鈥檛 apply to plans sponsored by the federal government or by churches.

What events require offering COBRA?

If your business/organization is required to offer COBRA coverage, then you must offer it to an individual who lost coverage in your group health plan after they experienced a qualifying event. Qualifying events include:

• An employee鈥檚 employment is terminated for any reason other than gross misconduct.
• An employee experiences a reduction in hours.

Additionally, spouses or dependent children need to be offered COBRA if one of the above or following events impacts their coverage:

• The covered employee becomes entitled to Medicare.
• Divorce or legal separation from the covered employee.
• Death of the covered employee.
• Loss of dependent child status (under the plan rules).
• Your business or organization declaring bankruptcy.

When does COBRA need to be offered?

You have 30 days to notify your plan administrator that a qualifying event has occurred. Within 14 days of notification, your plan administrator must mail a Specific Rights Notice (SRN) to the individual who is now eligible for COBRA. From there, it鈥檚 in the hands of the qualified beneficiary to decide whether or not to elect COBRA.

What does COBRA cost, and who pays for it?

COBRA health insurance premiums can鈥檛 cost more than the cost of coverage through the group health plan, plus a 2% administration charge. Employees typically pay the entire cost of COBRA coverage, but an employer can opt to pay for a portion of coverage under certain circumstances. You can also save you and your employees money by offering coverage through a COBRA alternative marketplace.

How long can a qualified beneficiary be covered by COBRA?

You鈥檙e required to provide COBRA coverage for 18 or 36 months, with the length of time determined by the type of qualifying event that occurred. For example, when the qualifying event is an employee鈥檚 termination or reduction in hours, you鈥檙e only required to offer continuation coverage for 18 months. Most other qualifying events require 36 months of coverage to be offered, but .

Stay up to date on the latest with COBRA by subscribing to our blog!

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

亚洲色吧 receives compensation from some of the merchants identified in its blog posts. By linking to these products, 亚洲色吧 is not endorsing these products. 

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1. Make sure your W-2 form shows HSA payroll contributions

Provided by your employer, your  shows the wages you earned and any taxes withheld. It also shows pre-tax contributions made to your account by you and your employer through payroll deductions. (Remember, only contributions made through payroll 鈥� if you made any contributions outside of your payroll deductions, sometimes referred to as ad hoc contributions, they won鈥檛 be reflected and will need to be included when filing your taxes.)

2. Make sure you have access to your HSA tax forms

A  is the HSA tax form that reports distributions from your account. You’ll need this form when filing your taxes.

On the other hand, a聽 reports contributions. It鈥檚 a little different from your W-2 because it鈥檒l show any contributions 鈥� not just those made through payroll deductions. HSA administrators have until June 1, 2026 to issue Form 5498-SA to HSA participants. This form is not a requirement when filing taxes.

The recipient instructions provided with each of these forms walk you through which boxes reflect which information, as well as basic instructions on how to use the forms.

亚洲色吧’s HSA participants can find the tax forms related to their HSA .

3. Prepare to report distributions and contributions using tax Form 8889

is used to report your health savings account. Think of this form as the place where the numbers from forms 1099-SA and 5498-SA or W-2 come together. Any distribution amounts reflected on your Form 1099-SA need to be reported on this form, where you鈥檒l also indicate which distributions were eligible for medical expenses. And any contributions made to your HSA should also be listed on this form 鈥� you鈥檒l then carry that information over as deduction information on your (or the main tax form you fill out and file for your tax return). how to complete Form 8889.

4. Make any additional contributions

Looking to make additional contributions to your HSA? The good news is that if you haven鈥檛 filed for the tax year yet and haven鈥檛 maxed out your annual contribution, you can still make additional contributions to your HSA to count toward the prior year. Normally, it鈥檚 recommended to do it by early April to be sure there鈥檚 enough time for any changes to process in your account and allow you to still complete and meet the tax return deadline.

If you’re a 亚洲色吧 participant and make a contribution between January 1, 2026 and April 15, 2026 that you want to be allocated to the 2025 tax year, just be sure to notify us through your online account or with the HSA Contribution Form that the contribution was for 2025.

Please note: In a couple states, HSA funds are taxed.

Subscribe to our blog for the latest insights on employee benefits. Simply hit the 鈥淪ubscribe鈥� button above or submit your email address in the form below.

This blog post was most recently updated in March 2026.聽

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It鈥檚 a smart way to save money on expenses or for a dependent. Watch the full podcast episode below or keep reading to learn more about these plans.

Dependent care FSA eligible expenses

Funds can be used to pay for childcare when they鈥檙e claimed as qualifying dependents. But the savings potential isn鈥檛 limited to just childcare. They can also cover care for a disabled spouse or dependent of any age.

To be eligible for dependent care FSAs when offered through your employer, you and your spouse (if applicable) must be employed, or your spouse must be a full-time student or looking for work.

Big savings potential

Let鈥檚 say you enrolled and contributed $5,000 per year into a dependent care FSA in 2025. You also pay the average American tax rate of 24.8 percent. By putting that money aside pre-tax in a dependent care FSA rather than allowing the funds to be taxed, you save over $1,200 this year!

For married couples who file taxes separately, the 2026 limit is $3,750 per person per year.

Note: Employers may offer these limits, but are not required to. 

Below is a look at the average participant contribution to a dependent care FSA. For more benefit trends, click below!

Below is a look at the average participant contribution to a dependent care FSA. For more benefit trends, click below!

Fast and simple reimbursement

If you participate in a dependent care FSA by 亚洲色吧, you have two easy options for collecting reimbursement with this type of FSA:

• Mobile or online reimbursement. You can easily upload documentation to a claim by logging into our mobile app, taking a photo of your documentation with your phone鈥檚 camera and uploading it. You can also use your app or online account to upload your Reimbursement Request Form. No additional documentation is required if the dependent care provider signs the form. Once enrolled, you can find the form in your online account or by searching .
• Our Recurring Dependent Care program. If you鈥檙e paying for daycare expenses with your account and enroll in this program, you only need to submit one reimbursement form per year for each daycare provider used.

Weighing the tax credit versus a dependent care FSA

The IRS offers a tax credit to those who have childcare or dependent care expenses. You can鈥檛 enroll in a dependent care FSA and apply for the tax credit with the same funds. The tax credit is for two or more children.

It鈥檚 possible to apply the tax credit to the difference of what you put into dependent care and the tax credit. For example, if you鈥檙e putting $5,000 into the account, that would leave $1,000 that you can apply the tax credit to before you鈥檝e reached the $6,000 ceiling for the credit.

Other dependent care FSA questions

Do dependent care FSAs roll over?

No, dependent care FSA funds do not carry over to the next plan year. 

What is the dependent care FSA limit?

The dependent care FSA contribution limit for 2026 has increased from $5,000 to $7,500 for individuals or married couples filing jointly ($3,750 for a married person filing separately).聽

How can I calculate how much I will save?

Use our FSA calculator to see how FSAs can help you pay less taxes and increase your take-home pay. 

What specific benefits can I get from a dependent care FSA?

You can use a dependent care FSA to pay for preschool, summer day camp, before or after school programs, and child or adult daycare.

Check out our graphic below to learn more about dependent care FSAs!

This blog post was most recently updated in March 2026.聽

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

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Download our app

A variety of day-to-day expenses are eligible for your HSA and FSA funds, including over-the-counter expenses. Having your employee benefits anytime you need them isn鈥檛 just comforting. It鈥檚 an expectation. If you participate in an HSA, FSA, HRA, LSA, or commuter benefits with us, download the benefits mobile app to check your balance, file claims, upload documentation, and even use the scanner to check products for eligible expenses.

How do you do this? Go to the or store and search 鈥淏enefits by 亚洲色吧.鈥� It will be one of the first apps you see after that. 

Sign up for text alerts

Statements. Contributions. Debit card activity. There are a variety of activities related to your account that you want to stay on top of by signing up for text alerts. 

How do you do this? From your online account, click on Message Center and then click Update Notification Preferences. In this menu, you can also add your phone number and email address for your account. 

Update email address

If you completed the previous task of signing up for text alerts, you may have noticed that there are a variety of email notifications also available, including notifications for your HSA account summary or debit card activity. And going paperless is great for the environment! You鈥檒l want to make sure you have the right email address on file when signing up for these. 

How do you do this? From your online account, hover over Accounts and click on Profile Summary.

Add dependents

Your HSA or FSA may cover your dependents鈥� costs if the dependents are . 

• For medical FSAs, expenses for children through age 26 and spouses are permitted.  
• For dependent care FSAs, it’s generally dependent children through age 12 (or spouses or adult dependent children who are physically and mentally incapable of self-care).聽聽
• For HSAs, it’s tax dependents and spouses.

How do you do this? From your online account, hover over Accounts and click on Profile Summary.

Add beneficiaries (for HSA)

An HSA is all yours. Your balance rolls over from year to year, and the account stays with you even if you change jobs. Because an HSA is a 鈥渟avings鈥� account, you鈥檒l want to designate a beneficiary (or beneficiaries), just as you would with a 401(k) or other retirement-planning accounts. 

How do you do this? From your online account, hover over Accounts and click on Profile Summary.

Add a bank account

When you pay out of pocket for HSA or FSA eligible expenses, you want to be reimbursed fast! By adding a bank account to your account, your HSA and/or FSA can reimburse you for out-of-pocket expenses through direct deposit, which is a faster way to be reimbursed.

How do you do this? From your online account, hover over Accounts and click on Banking/Cards.

Check out knowledgebase

If you want to know the answer to something, you can search for it online. Your employee benefits experience should be the same way. We developed our knowledgebase with that in mind, so you can easily find answers to questions you have about HSAs, FSAs, commuter benefits, and more!

How do you do this? Click 鈥淕et Help鈥� within your online account to view our knowledgebase of help articles. Search for what you need, or peruse articles based on topic. 

Review your tasks

The Tasks menu will let you know of any actionable items, such as setting up a bank account for direct deposit (we鈥檒l get to that shortly) and the need to upload documentation for an outstanding FSA claim. 

How do you do this? Right after you log in to your online account or the benefits mobile app, you鈥檒l see a 鈥淭asks鈥� menu. 

Education is critical to get the most out of your employee benefits. Stay updated on the latest trends and insight by subscribing to our blog!

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own counsel.

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You have options

HSA transfer

If your new employer offers an HSA, you can transfer the administration of your account to your new employer鈥檚 HSA administrator. If you select this option, your new employer will provide you with a transfer request form that authorizes a new HSA custodian to take over the administration of your account. There are no IRS fees or penalties for this option.

“With a true HSA transfer, the key there is it’s a requester initiating to have the funds transferred directly from one HSA custodian to another, so those funds will never touch your hands,” says Amy Donlin, senior solution analyst, benefits, 亚洲色吧.

HSA rollover

You can also take a rollover approach, which is a process by which you receive a check for your HSA funds. You have 60 days after receiving these funds to move them into another HSA. But watch out: If you exceed the 60-day window, those funds will be considered a distribution and taxed 鈥� and you鈥檒l be assessed .

“This option is limited to only one time during the calendar year,” said Kyle Schulte, senior solution analyst, benefits, 亚洲色吧. “It’s important to make sure when you’re consolidating these accounts that you understand what method is being used.”

Keep the HSA open

There are no IRS fees or penalties for doing so. If you do keep your current HSA, you can withdraw funds for eligible expenses at any time. However, you can only contribute to your HSA if you鈥檙e still enrolled in a high-deductible health plan. You can also invest some or all of the funds!

(Wondering how much you should contribute to your account in the first place? We鈥檝e got you covered.)

Your HSA is your account

The bottom line is that your HSA is yours. This account doesn鈥檛 belong to your employer, so you get to take it with you wherever you go, even if your new employer doesn鈥檛 offer HSAs or provide HSA contributions. 

Still have questions?

Watch our episode of Benefits, as we cover your options when you have multiple HSAs!

This blog post was most recently updated in December 2024.

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

亚洲色吧 receives compensation from some of the merchants identified in its blog posts. By linking to these products, 亚洲色吧 is not endorsing these products. 

The post What happens to my HSA when I change jobs? appeared first on 亚洲色吧..

How well do your employees understand their FSA’s plan rules? If they don鈥檛, they could risk forfeiting funds to the plan. And any forfeiture of funds would create a negative experience for them that may discourage future FSA participation, hurting their ability 鈥� and your ability 鈥� to save money. Fortunately, you can help. 

Add a carryover or grace period

You can give your employees even more flexibility to spend their FSA dollars by adding a carryover or a grace period in future plan years. 

• What is a carryover? A carryover lets your employees carry FSA funds $680 from their 2025 FSA) indexed annually per IRS rules) from one plan year to the next. You determine the amount of the carryover, up to the max IRS amount allowed.
• What is a grace period? A grace period gives your employees additional time (up to 2 陆 months) past the plan end date to incur expenses. You determine the length of the grace period up to the max time frame allowed by the IRS.聽

Offering a carryover or grace period will help FSA participants avoid of what’s actually covered by their FSA when spending down their funds.

Please note: IRS rules don鈥檛 allow you to offer both a carryover and a grace period in the same plan. 

Remind them of your plan rules

More than a year passes between the time your employees choose to participate in a medical FSA and the end of that FSA鈥檚 plan year. Communicating your FSA鈥檚 rules during open enrollment is important, but reminders are important too. Be sure your employees know the answers to questions like: 

• Does my medical FSA have a carryover?
• If there is a carryover, how much is it? See above for the carryover limits.
• Does my medical FSA have a grace period?听

Provide info on eligible expenses

Your employees may have determined their FSA participation amount based on expected expenses. But, it鈥檚 possible that they over-estimated and didn鈥檛 incur the eligible expenses that they were anticipating prior to the plan year. 

Fortunately, there are some pretty common household expenses that are eligible for FSA funds, such as pill boxes, nasal sprays, and eye drops. And the CARES Act, which was signed into law in 2020, made popular over-the-counter drugs and medicines eligible for FSA funds without a prescription.聽

You can remind your employees that they can determine whether an expense is eligible for their FSA dollars by using their mobile app. The eligible expense scanner lets them scan the bar code of an item to see if it鈥檚 FSA eligible. 

Your employees can also shop confidently for FSA-eligible purchases at merchants that sell only FSA-eligible products. For example, lets them shop among hundreds of eligible expenses. And their purchases are shipped right to their door. Encourage them to check out FSA Store if they have excess FSA funds. 

Share steps on filing a claim

On the other hand, your employees might not be looking for additional expenses to purchase. They may simply need a reminder on how to file a claim so that they can be reimbursed with their FSA funds. Administering your own FSA can be time-consuming, so many employers turn to third-party administrators (TPAs). If you work with a TPA, your TPA should have systems and processes in place to make claim filing easy.

We鈥檝e proven to be industry leaders in simplifying the claim process. Our 亚洲色吧 benefits card automatically approves any FSA purchases of eligible expenses when used at merchants with . When your employees do need to substantiate a claim, it鈥檚 easy for them to upload documentation and check the status of a claim with their mobile app or online account.

Subscribe to our blog so you’ll get benefits tips sent right to your email inbox! Simply submit your email address in the form towards the bottom of the page. And watch our video below to learn more about the basics of a medical FSA. 

The information in this blog post is for educational purposes only. It is not legal or tax advice. For legal or tax advice, you should consult your own legal counsel, tax and investment advisers. 

亚洲色吧 receives compensation from some of the merchants identified in its blog posts. By linking to these products, 亚洲色吧 is not endorsing these products. 

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