FSA Store offers more than 2,500 guaranteed-eligible products, telehealth services, and deadline education to help millions of FSA users spend remaining 2024 tax-free healthcare funds
DALLAS, Feb. 6, 2025 /PRNewswire-PRWeb/ -- Finances are top of mind as tax season approaches and the new year gets underway, and for millions of Americans who are enrolled in an FSA with a deadline extension, that also means finding ways to spend down remaining 2024 contributions to avoid a forfeiture. FSA Store, the first and leading online store that exclusively sells products and telehealth services that are eligible with FSA funds, is sharing tips and reminders about the March 15 FSA grace period deadline and spending extensions to demystify FSA spending and help consumers benefit better from their tax-free funds.
"A key factor in maximizing tax-free FSA funds is understanding your deadline and what's eligible," said Rachel Rouleau, chief compliance officer for Health-E Commerce®, parent brand to FSA Store. "At FSA Store, we offer in-depth education and account tools to help individuals and families understand how their accounts work, including what's eligible, how to avoid forfeiting their healthcare dollars to a missed deadline, and how deadline extensions work."
With an estimated 36% of employers offering an FSA grace period, FSA Store is providing answers to five common FSA deadline questions, so consumers can make the most of their funds in the coming weeks:
1. What is the FSA grace period? The FSA grace period gives account holders an additional 2.5 months after the plan year deadline to spend FSA funds or incur expenses for the current plan year. Most FSA users have a plan year deadline of December 31, which means their grace period deadline is March 15 of the following year. In other words, those with a December 31, 2024 deadline and a grace period have until March 15, 2025 to spend down funds from the 2024 plan year. After March 15, unused FSA funds will be forfeited back to the employer.
2. What is an FSA carryover? An FSA carryover is an optional feature that employers can offer with the FSA that allows individuals to rollover up to $640 of unspent funds from 2024 to their 2025 FSA. The amount of FSA funds rolled over does not impact the amount an individual can contribute to their FSA in the 2025 plan year.
3. What is an FSA run out period? While a grace period allows users to incur new expenses against their 2024 FSA funds, a run-out period gives account holders an extra 90 days to submit claims for reimbursement for qualified expenses that were incurred during the 2024 plan year.
4. Can an employer offer more than one FSA deadline extension? Employers can combine a grace period and a run-out period, but they cannot combine a grace period with an FSA carryover. It's important to understand that these options are offered at the discretion of the employer. An employer is not required to offer any deadline extension or rollover option.
5. How can leftover FSA funds be used? Tax-free FSA funds can be used to pay for a wide variety of everyday healthcare expenses, as well as some specialty products, and a long list of telehealth services and in-office medical treatments. FSA Store offers a comprehensive, searchable eligibility list and a selection of over 2,500 guaranteed-eligible products. In addition, FSA users gain easy access to telehealth services when they shop FSA Store. In addition to products and clinical services, account holders can also use their FSA funds to cover many other health plan expenses including but not limited to deductibles and copayments for health, vision and dental care, but not insurance premiums.
To learn more about the March 15 FSA grace period and other deadline extensions, visit the FSA Store Learning Center.
About Health-E Commerce
Health-E Commerce is the parent brand to FSA Store and HSA Store, online stores that serve the 70+ million consumers enrolled in pre-tax health and wellness accounts. The company also created Caring Mill®, a popular private-label line of health products through which a portion of every purchase is donated to the Children's Health Fund. Since 2010, the Health-E Commerce brands have led the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce plays an essential role in expanding product eligibility for important new categories within the list of eligible medical expenses.
Media Contact
Barbara Tabor, FSA Store, (651) 230-9192, [email protected], FSAstore.com
SOURCE FSA Store
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