Mid-year changes to your Flexible Spending Account (FSA) contributions are generally not permitted unless you experience a Qualifying Life Event (QLE) as defined by the IRS. Simply having a change in anticipated medical expenses does not qualify for an election change.
Qualifying Life Events Include:
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Change in Marital Status: Marriage, divorce, legal separation, annulment, or the death of a spouse.
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Change in Number of Dependents: Birth, adoption, or death of a dependent.
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Change in Employment Status: Alterations in employment for you, your spouse, or dependents, such as termination, commencement of employment, a strike or lockout, a return from unpaid leave, or changes in worksite.
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Dependent Eligibility Changes: A dependent becoming eligible or ineligible due to age, student status, or similar factors.
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Change in Residence: Relocating to a new place of residence that affects your eligibility for coverage.
It’s important to note that these events must be consistent with the change you wish to make to your FSA election.
If you experience a QLE, you typically have a limited window (often 30 days) to request a change to your FSA election. Be sure to consult your employer’s specific plan details, as not all plans permit mid-year changes, even for qualifying events.
For more detailed information, refer to the IRS guidelines or consult with your HR department to understand how these rules apply to your specific situation.