FSAstore.com Commends New Flexible Spending Account Rule Allowing Employers to Offer $500 "Carryover" to Help Participants Avoid Complete Forfeiture
"Carryover" Could Increase FSA Adoption Overall by Easing Forfeiture Concern
NEW YORK, Nov. 6, 2013 /PRNewswire/ -- FSAstore.com, the only e-commerce site stocked exclusively with Flexible Spending Account (FSA) eligible products and services, reminds consumers to take advantage of an FSA during open enrollment season. FSAs let employees set aside pre-tax income for out-of-pocket healthcare expenses including over-the-counter products, dental and eye care, and costs not covered by insurance plans for medical services.
FSA enrollment increased in the last five years to 23% in 2013 for those with private health insurance coverage, the CDC found. Given the recent changes announced by the U.S. Treasury Department to the "Use it or Lose it" provision, FSA enrollment is expected to be higher than ever this season. Changes to the "Use it or Lose it" rule allow employers to offer a carryover of up to $500 in funds or allow a 2 1/2 month grace period at the end of year. FSA plans cannot have both options.
"Changes to the 'Use it or Lose It' rule present a significant growth opportunity for Flexible Spending Accounts," said Jeremy Miller, president and founder of FSAstore.com. "Open enrollment season, which allows employees to opt into an FSA, is underway. The 'Use it or Lose it' provision was one reason why people shied away from FSAs. This change, coupled with the major pre-tax savings on out-of-pocket expenses, should encourage many new participants to take advantage of FSAs."
Added Miller, "We sell FSA eligible products that people need and use every day such as first aid supplies, blood pressure monitors, contact lens solution, and breast pumps. These are just a few items our customers purchase year-round. Any adjustments made to FSA rules that empower more families to take advantage of FSA accounts, and achieve sizable tax-free savings, are a win."
FSAstore.com is the only one-stop-shop exclusively stocked with FSA eligible products - eliminating the guesswork behind what is reimbursable by an FSA. Consumers with flexible spending accounts can access thousands of FSA eligible products, FSA eligible services, and much-needed information through the FSA Learning Center. FSAstore.com accepts all FSA and major credit cards, offers 24/7 customer service, one-to-two-day turnaround for all orders, and free shipping on orders $50+.
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