Can I Modify My 2021 Fsa Contribution Mid-Year?

Why can’t I change my FSA contribution?

In most cases, once the plan year for your Flexible Spending Account (FSA) begins, you typically cannot alter the choices you’ve made regarding your contributions. This rule is established to maintain the stability and consistency of the FSA system. However, there are exceptions to this general rule. The Internal Revenue Service (IRS) defines specific situations in which you are allowed to modify your FSA elections after the plan year has commenced. These exceptions are detailed in the Summary Plan Description (SPD) of your FSA plan, which serves as a comprehensive guide outlining the rules and provisions specific to your plan. Therefore, if you find yourself in a situation necessitating a change in your FSA contributions, it is essential to refer to your plan’s SPD to understand the IRS-approved circumstances under which such adjustments are permitted. This ensures that you have a clear understanding of your FSA’s flexibility and limitations.

Is it possible to adjust the amount I contribute to my Flexible Spending Account (FSA)?

Typically, employees are required to make their contribution decisions for the upcoming plan year during the annual open enrollment period. Once this period has concluded, it’s generally not possible to modify your chosen contribution amount, except under specific circumstances known as qualifying life events (QLEs). A qualifying life event might include significant life changes like marriage, the birth of a child, or a change in employment status. It’s important to note that as of January 19, 2023, these rules apply, but it’s always a good idea to check with your specific FSA plan for any updates or changes in policy.