New $500 Rollover for Health Care FSA
The Health Care Flexible Spending Account (FSA) offered through UK is a convenient way for you to pay for eligible medical expenses with tax-free dollars. When you choose to take advantage of the FSA, you receive a debit card to make your qualified purchases so that, in most cases, you can enjoy paperwork-free, instant reimbursement. In the current and previous plan years, any amount contributed to your FSA that was left unused at the end of the plan year’s 2 ½ month “grace period” beyond June 30 was lost to you, the employee. We are pleased to announce that beginning in the 2014-15 plan year that begins July 1, unused funds up to $500 will simply be carried over from one plan year to the next.
This change was based directly on your feedback! When the federal government recently offered the new $500 “rollover” option, we asked our employees to choose: The current 2 ½ month grace period to use FSA funds OR the new $500 rollover option?
In January 2013, we asked UK employees to participate in surveys asking where they stood on the matter. Of those currently participating in health care FSAs, 77 percent of those who took the survey said that they would prefer the rollover option. Of those not currently enrolled in a flexible spending account, 54 percent indicated they would be more likely to participate with the new rollover option. Given these results, UK chose to implement the new $500 rollover benefit.
What does this mean to you? If you contribute $2,500 (still tax free!), for example, to your Health Care Flexible Spending Account in the 2014–15 plan year (July 1, 2014 - June 30, 2015), but only spend $2000 you roll over the remaining $500 for use any time during the 2015–16 (July 1, 2015 - June 30, 2016) plan year! We thank everyone for their input. We hope that this adds more convenience to your current FSA, or encourages you to consider taking advantage of this benefit if you aren’t currently enrolled. Please note: