On November 10, 2021, the Internal Revenue Service (IRS) released updated flexible spending account (FSA) - The FSA limits are increasing in 2022 to $2,850 per year, up from $2,750 in 2021.
Does your agency or school’s FSA have a grace period, runout or rollover. If so, group leaders should communicate the details with employees, as this can help them take full advantage of the time they have to incur expenses and submit receipts for reimbursement.
A grace period is the amount of time an FSA-holder has after the end of the plan year to spend unused funds or incur expenses. A typical grace period is up to 2.5 months after the plan year ends.
A runout is the amount of time an FSA-holder has after the end of the plan year to submit claims for reimbursement. In this case, expenses must be incurred before the end of the plan year.
An FSA rollover allows up to $550 to be carried over from 2021 to 2022 calendar year.
Helping employees make the best use of their FSA funds is important for their financial wellness. Please make sure to review your plan to see what options you have available.
Learn more about FSA's:
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Offered exclusively to members of the MHC / Resource Training & Solutions health insurance pool. For more information contact Brittani Daniel, Insurance & Wellness Manager.