In the week since the IRS issued guidance allowing up to $500 in a Flexible Spending Account to roll over from year to year, plan administrators have worked to adapt their offerings and prepare for the future, but unforeseen kinks in savings accounts adjustments – as well as an ongoing push in Congress to fight an Affordable Care Act change to FSAs’ use – could throw benefits pros and plan participants for a loop.
Only those in high-deductible health plans can elect to include a Health Savings Account as part of their insurance, so usually a participant won’t have both an HSA and an FSA, unless the latter is directed at “limited-scope benefits,” such as vision or dental. And originally, when the rules allowed for a two-and-a-half-month grace period on FSA expenses into the new year, that would preclude HSA contributions for that period. Could it now block them for an entire year if funds are carried over?
