With changes in federal regulations, all savings under the Flexible Spending Account (FSA) medical plan must be used by December 31, 2014, with the exception of a $500 carryover to be used in the new calendar year. This replaces the prior practice of a 2.5 month grace period and allows for more flexibility in how employees redeem pre-tax income they have set aside. More information about the carry-over provision can be found here.
Employees do not have to reenroll in the new plan year to have unused Health Care FSA funds carry over to the new plan year.
For more information contact Andy Sherwood, human resources, at 8981 or sherwood@up.edu.