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All the money set aside in an FSA generally must be used by the plan year's end. However, a plan can offer a grace period of up to two-and-a-half months to finish using that funding.
When the year ends or the grace period expires, any funds that remain in the FSA are lost. Thus, your employees should carefully calibrate the amount of money they plan to put into the FSA account and how they intend to spend it over the course of the year.
Setting up an account is another employee perk that will keep existing staff in the company's favor and help attract top talent later. Although these employer benefit plans can sometimes be confusing, we can help plan this better for you and your organization. Connect with us to know more!