Other Important FSA Rules
FSAs are easy to set up and use, once you understand how they work. Here are some simple guidelines you should know:
- The FSA plan year runs from January 1 to December 31, with a grace period that extends the year until March 15 (a total of 14½ months to incur eligible health care expenses).
- Once you make the election, you are "in" for the year unless you have a life-changing event, retire or resign.
- The amount selected cannot be changed up or down for the year unless you have aa eligible change in status or go on family leave.
- Your reimbursements cannot exceed the amount you allocated on your sign-up form.
- Use it or lose it — You have until March 31 of the following year to file for reimbursement of expenses incurred in the previous year. If you have money left in your account after all your claims are filed, you forfeit the remaining amount. That's why it's very important to estimate your eligible expenses carefully when deciding how much to contribute.
- No double-dipping — Once you are reimbursed for healthcare and dependent care expenses through your FSAs, you cannot deduct those expenses on your federal income tax return. You have to choose to use either the FSA or to deduct these expenses from your taxes, but you can't do both.
- If you voluntarily or involuntarily leave Metro, you may incur claims up to your last day worked. You have 90 days to submit your reimbursement claim.