Election forms filled out each year?

tgregory · November 2011

Must an employee complete a new FSA and/or HSA election form each year

I can't find anywhere on the IRS site that stipulates that an employee must execute a new election each year.

Has it just been our "business practice", or is it a requirement?

If it has been our business practice, is it prudent or a waste of everyone's time?

Still Need Coffee · November 2011

I would check with the administrator of your FSA and HSA programs. For both of ours, the plan docs state that if a new election isn't made, the election from the previous year will be used again.

NaeNae55 · November 2011

Agree with Coffee, check with your administrator and your plan doc. Ours states that insurance premiums will automatically be covered unless we receive an opt out letter, and that employees must make an election for medical reimbursement or dependent coverage every year. Each election is only good for that specific year.

Dutch2 · November 2011

Agree with others... Up until last year, we were required by our FSA provider to have all employees compelte a form every year, even if they did not want to particiapte in the program. Now we only need forms completed each year from those that do wish to participate in the program.

davids · November 2011

I suggest you look at the enrollment form that the employee originally completed. Did it state enrollment in the FSA was for a limited period of time or was it authorizing deferrals until the employee affirmatively opted out?

gdanner · November 2011

For the FSA plan, you are not required by law to have a new election each year. However, because it is a use it or lose it proposition it is in your best interest to make that the practice. FSA participation takes planning and just because I had $2,500 of FSA expenses this year does not mean I can anticipate the same next year. Why have an irate employee who forgets to change and ends up having too much withheld because of it and then loses it? That will give the program a bad reputation. It is far better that the employee forget to submit one and not have the reimbursement.

Election forms filled out each year?

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