2FA for P&A Participants
Love is in the air and wedding season is in full swing. It’s a time of celebration and happiness for many people – let the good times roll! But wait – don’t forget the necessary practical changes that need to be made during these happy life events. Getting married should prompt you to review your benefits and determine any necessary changes you need to make, including a special opportunity to change your FSA election.
Yes, there are some situations that allow you to change your FSA contribution outside of Open Enrollment.
A life event or a change in status – like marriage, birth of a child, or divorce – are all special circumstances when you are permitted to change your FSA election amount, regardless of where you are in your plan year. You are normally unable to change your FSA election outside of Open Enrollment according to IRS regs – unless you experience a qualifying life event. A change in status includes the following:
For a full outline of what constitutes a change in status, please refer to your company’s Summary Plan Description (SPD), usually available through your HR department .
If you experience a change in status, the changes you make to your FSA must be consistent with the change in status. For example, if you have a child, you can increase your contribution to your FSA, but you cannot decrease it. However, the IRS does not allow you to change your election below the amount you’ve already been reimbursed for the plan year.
Let’s say you enroll in the Health FSA for $2,000, and you’ve already spent $1,000 from your account. Unexpectedly, your husband changes jobs and you decide to lower your election amount. You cannot lower your election amount below what you’ve already spent, or in this case, $1,000.
So, when the wedding cake is gone and the celebration has quieted down, take a moment to sit down with your partner and review all of your important benefit decisions together.