Money Matters - FSA Deadline Tool

  FSA Store®, the first and leading online store dedicated exclusively to selling FSA-eligible products and services, announced today the launch of a new, FSA deadline tool that will help consumers personalize FSA spending based on their FSA budget and their personal health needs. This free tool will help consumers avoid forfeiting tax-free FSA funds to the December 31 use-it-or-lose-it deadline.

“Our proprietary data shows that nearly 70% of FSA users have a December 31 deadline by which funds have to be spent, and not understanding what’s eligible is a key reason people leave money on the table at the end of the year,” said Rachel Rouleau, chief compliance officer for Health-E Commerce®, parent brand to FSA Store. “Our new deadline tool allows individuals and families to find a custom fit for their remaining FSA funds or budget, so they get more value out of their tax-free benefits.”

The FSA Store deadline spending tool allows users to type in their FSA budget (which may be the same as their remaining FSA balance), select the types of products they are interested in, and receive a list of eligible items that fit within their pre-assigned amount. As items are placed in the shopping cart, the remaining available budget is adjusted, ensuring that users don’t exceed the amount they wish to spend. 

In addition to making its free deadline planning tool available, FSA Store is sharing the following deadline tips and reminders with account holders.

4 steps to avoid forfeiting FSA funds:

1. Check your FSA balance today. Your employer or FSA administrator is a good place to start for this information. You may even have access to your FSA information via an online portal. This would be offered through your FSA administrator, whose information can often be found on the back of your FSA debit card. 
2. Ask about your deadline and any rollover amount or deadline extension your employer might offer to plan responsibly. 
3. Use the searchable FSA eligibility list at FSAstore.com to shop for everyday health products, including: over-the-counter medications, specialty skincare products, infant and toddler care, sunscreens and lip balms with SPF, menstrual care products, high-tech health monitoring and diagnostic devices, drug-free pain relief, and more. 
4. Explore newly eligible telehealth services. Getting doctor appointments at the end of the year can be challenging, but newly available telehealth services from respected companies like BetterHelp, Bilt Labs, ShedRx, Winona, Proov, and more make it easy to get started on the road to improving health with tax-free funds.

Important FSA deadline facts:

• The December 31 use-it-or-lose-it deadline is the date by which, for many account holders, the FSA balance must be spent or remaining funds are lost.
• While December 31 is the most common spending deadline for FSAs, this deadline can vary based on an employer’s plan year. Account holders should log in to their FSA online portal, if available, to verify their deadline, or check with their employer or FSA administrator.
• An employer may offer an FSA deadline extension, such as a partial carryover of unused funds (when an employer opts to allow employees to carry over a portion of unused FSA funds from one year to the next); a grace period (an extra 2.5 months after the plan year end date – typically March 15 – during which you can spend FSA funds from the previous year on new expenses); and/or a run-out period (a timeframe after your plan year – usually 90 days – during which you can still submit claims for reimbursement from the previous year). 
• An FSA may have a carryover option or a grace period but not both, and/or a run-out period. Deadline extensions are completely optional and are determined by the employer.

FSA Store carries more than 2,500 exclusively FSA-eligible products and is a leading provider of FSA education and account management tools. Specially trained FSA experts are available 24/7 via online chat or telephone to answer deadline questions and provide support to account holders.

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About Health-E Commerce

Health-E Commerce is the parent brand to FSA Store and HSA Store, online stores that serve the 70+ million consumers enrolled in pre-tax health and wellness accounts. The company also created Caring Mill™, a popular private-label line of health products through which a portion of every purchase is donated to the Children’s Health Fund. Since 2010, the Health-E Commerce brands have led the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce plays an essential role in expanding product eligibility for important new categories within the list of eligible medical expenses.