Flexible Spending Open Enrollment
IMPORTANT FLEXIBLE SPENDING ACCOUNT (FSA) INFORMATION
Open enrollment ends 12/15/2017 – no exceptions
The Town of Wellesley will be changing its plan year for Flexible Spending Accounts (FSA) to coincide with the plan year for the other Town benefits (July 1 - June 30). Below is some important information as to how this will impact FSA signup for calendar year 2018 and beyond.
In order to make the switch from a calendar year to a benefit/fiscal year on July 1, the regularly scheduled FSA period will be shortened and an additional open enrollment period with a new plan year will be added. Moving forward, the FSA open enrollment period will coincide with the open enrollment period for health insurance. The open enrollment is usually in the spring with a July 1st effective date.
FIRST FSA PERIOD: 1/1/2018 - 6/30/2018*
The open enrollment for the first FSA period for calendar year 2018 ends at 4pm on December 15, 2017. The plan year for this FSA enrollment period is limited to 6 months and will only cover services incurred from 1/1/2018-6/30/2018. As a result, the maximum amount that employees will be allowed to sign up for will be $1,325 for medical expenses and $2,500 for dependent care expenses. The current FSA plan allows for a $500 rollover from one plan year to the next for the medical FSA option only. This option is still available for those who have money left in their medical spending accounts on December 31. In order to qualify for the rollover, employees will need to re-enroll in the medical FSA for calendar year 2018, even if it’s just for $.01.
*This is a one-time shortened period necessary to transition the FSA plan year to July 1st.
SECOND FSA PERIOD: 7/1/2018 – 6/30/2019
The next open enrollment for FSA will occur at the same time as the open enrollment for the other town insurance plans. FSA open enrollment at this time will allow for the full IRS amount of $2,650 for medical expenses and $5,000 for dependent care expenses and will cover services incurred from 7/1/2018 - 6/30/2019. This will be the regular open enrollment period.
The current FSA plan allows for a $500 rollover from one plan year to the next. This option is still available to those who have $500 or less in their medical spending accounts. In order to qualify for the rollover, employees will need to re-enroll in the medical FSA for calendar year 2018, even if it’s just for $.01.
Those who sign up for or already have a medical spending account have access to a pre-loaded debit card (the Benny card) that can be used on the spot to pay for incurred medical expenses. As a reminder, expenses you are seeking reimbursement for from the HRA cannot be put on the Benny card.
All enrollment forms are to be sent to Cafeteria Plan Advisors (CPA) directly. The contact information for CPA is as follows:
Cafeteria Plan Advisors, Inc.
420 Washington Street, Suite 100
Braintree, MA 02184
Questions can be answered by the Town Hall HR department by calling (781) 431 – 1019, ext. 2244 or emailing email@example.com or firstname.lastname@example.org. Enrollment forms and a general memo from CPA about Flexible Spending account enrollment can be found here.