In order to continue offering employees Flexible Spending Accounts, a primary administrator or benefits administrator generally must renew their FSA plan near the end of their plan year.
Generally, in order to continue offering employees Flexible Spending Accounts (FSAs), a primary administrator or benefits administrator renews their FSA plan near the end of their plan year. If the employer misses the renewal period, the effective date of the FSA usually cannot be changed retroactively.
For example, here is how an FSA renewal would work on Zenefits for a plan year ending on 12/31:
- The company’s primary administrator will be able to log in to Zenefits and renew the plan starting on 11/28.
- Zenefits will also remind the administrator to renew the plan by sending email reminders on 11/28, 12/5, and 12/10.
- Company FSA renewal must be completed by 12/15.
After the employer completes renewal, eligible employees (employees being offered benefits) will receive an email that reminds them to renew or cancel their current plan. Using the example above:
- Employee reminder emails should be sent on the 15th and 20th of December.
- Employees will have until 12/25 to complete their enrollment.