Don’t Leave Money Behind—Take Advantage of the FSA Run-Out Period and Protect Your Bottom Line
As a business owner, you’re always looking for ways to maximize the financial benefits of your business and employee programs. One often-overlooked opportunity is optimizing your company’s Flexible Spending Accounts (FSAs) during the run-out period. If you or your employees have unclaimed expenses from the previous year, now is the time to act.
Why FSAs Matter for Your Business and Employees
FSAs allow employees to set aside pre-tax money for healthcare, dependent care, and other expenses. For businesses, they reduce payroll taxes and help employees save on healthcare costs. However, FSAs follow a “use-it-or-lose-it” rule—unused funds must be claimed by the end of the plan year. The run-out period gives employees extra time to submit claims and recover funds before they expire.
The FSA Run-Out Period and Grace Period
The run-out period is a window after the plan year ends (typically 30-90 days) to submit claims for expenses incurred during that year. The grace period, which typically lasts 2.5 months after the year ends, allows employees to continue using their FSA funds. Both periods give employees a second chance to maximize benefits, so it’s essential to help them utilize both.
How the Run-Out Period Helps Your Business
The FSA run-out period is a crucial tool for optimizing your benefits program and ensuring that your employees take full advantage of the tax savings. Here’s why you can’t afford to ignore it:
- Maximized Claims: Employees have extra time to submit claims, preventing them from leaving money on the table and potentially improving employee satisfaction.
- Preventing Forfeitures: Unclaimed funds are forfeited if not submitted in time. Help your employees avoid this by keeping them informed about the run-out period.
- Increase Employee Engagement: Proactively encourage your employees to use the run-out period effectively, helping them get the most out of their FSA and fostering goodwill.
Key Tips for Business Owners
- Review Balances: Encourage your employees to log in to their FSA accounts through First American Bank Health Account Services Consumer Portal to review any remaining balances.
- Track and Submit Claims Promptly: Remind employees to submit all claims as soon as possible before the deadline.
- Provide Clear Communication: Ensure your employees are fully informed about the deadlines and eligible expenses.
- Reach Out for Assistance: First American Bank is here to help your business and employees make the most of the run-out period. Our specialists can guide you on how to effectively navigate the process.
The FSA run-out period provides a crucial second chance to claim unused funds, ensuring that your company’s benefits package is fully optimized. At First American Bank Health Account Services, we’re committed to helping you and your employees maximize your FSA benefits and minimize any lost opportunities. Don’t let your employees—or your business—miss out on this valuable benefit. Contact us today to make sure your team is fully prepared to take advantage of the FSA run-out period.
