Each year, more than $400 million in tax-free income is wasted when flexible spending account (FSA) holders don't spend FSA funds, or fail to submit expenses to be reimbursed by an FSA. While recent U.S. Treasury Department changes give employers the option to offer a rollover of up to $500 each year in unused FSA funds, a recent FSAstore.com survey of its benefit administrator partners found that 66 percent of employers are expected to wait until next year to amend their FSA plans.
Many people have a deadline of Dec. 31 to use remaining FSA funds, but with the recent changes, some could now rollover up to $500, while others may have a 2 ½ month grace period (until March 15) to use remaining FSA funds. FSAstore.com, which was founded on the idea that it should be convenient to spend and manage an FSA, has become the only one-stop FSA destination solely catering to FSA holders. FSAstore.com makes it easy for people to spend down their FSA balance on meaningful expenses by eliminating the guesswork and guaranteeing the eligibility of products. The fact that the FSAstore.com accepts all FSA and HSA debit cards and provides timely information about FSA account changes, makes it an even more convenient and reliable resource.
While recent articles discuss people using their hard-earned, tax-free dollars at deadline period on wasteful items, a recent poll of FSAstore.com customers found 94 percent satisfaction with being able to spend their funds on over 4,000 FSA eligible items without that money going to waste. In fact, people are often surprised that thousands of products, ranging from breast pumps to blood pressure monitors, pain relief products, and hundreds of necessary first-aid products are FSA eligible expenses. Of the more than 165 benefit administrator partners that were surveyed by FSAstore.com, 91 percent agreed FSAstore.com helps participants avoid forfeiture.
"The FSAstore.com prides itself on being one of the only sites that will have 24/7 customer support during this important time," said Jeremy Miller, CEO. "While other sites are shutting out FSA consumers in the last two days of the year, FSAstore.com will be open on Dec. 31 until 3:00 a.m., Pacific Time, with live chat and live phone support. Our unique tools and blog keeps FSA holders in the loop year-round, so that they can better understand and maximize their FSA."