Employers are not required to offer the rollover on their FSA plans. However, we recommend you to add the rollover to their current plans.
There are many benefits that come with allowing your employees to carry their balance over to the next plan year.
Did You Know?
- FSA Rollover allows employees to carry up a portion of their unused FSA funds forward to the new plan year. They are able to use their unused funds throughout the next plan year!
- The fear of losing money is the #1 reason employees choose to not participate in an FSA.
- Survey shows that employees are 1.5 times more likely to participate in an FSA with rollover.
Note: Employers can also elect a lower maximum rollover amount for their participants. Regardless of what the employer chooses to do, they must apply the higher or lower maximum roller over amount equally to all of the participants.
