The importance of estimating carefully
FSAs are tailor-made for people who like to plan and budget for expenses they know they will have during the year. But, there are other reasons to carefully plan FSA contributions:
- HCFSA and DCFSA contributions can be changed during the year, but only if you experience a specific qualifying life event. Even then, participation or contribution changes must be directly related to your qualifying life event.
- You cannot move money from one FSA to another. Money deposited in the HCFSA must be used only for qualified healthcare expenses. The DCFSA can be used only for qualified day care expenses.
You can submit claims for expenses incurred and paid in a calendar year until March 31 of the following year. For example, you can submit expenses incurred in 2022 until March 31, 2023. UnitedHealthcare must receive claims no later than March 31.
According to Internal Revenue Service regulations, amounts remaining in an HCFSA following the March 31st claim-filing deadline must be forfeited under the Stryker plan. Amounts that have not been used in one calendar year cannot be applied toward expenses incurred in the next calendar year.
DCFSA plans include a grace period. If you have unused contributions in your account at the end of the current plan year you can continue to incur expenses during the first 2.5 months immediately following the end of the plan year and receive reimbursement for these expenses until such unused funds are depleted. All requests for reimbursement will be accepted and processed through March 31 of the following year. For example, if you have $1000 in unused contributions remaining at the end of the current plan year, you may use eligible expenses incurred through March 15 to deplete those funds, and submit the claims by March 31. Any expenses incurred after March 15 would count toward the current plan year account, if you have one. According to Internal Revenue Service regulations, after March 31 funds remaining in your account for the previous plan year will be forfeited.
Regularly, you will receive an FSA statement showing contributions, claims processed and your account balance as of the statement date. You can also check your account balance at any time by visiting www.myuhc.com.