Important year-end FSA deadline reminders employees need: 3 templates for employers
The clock is winding down to the end of the year and if you’re an HR professional or employer, now is the time to remind employees that they may have flexible spending account (FSA) funds left to use before the December 31 use-it-or-lose-it FSA deadline.
Why should you make time for this now when you have a million other things to do before the end of year? Because a recent VISA survey suggests that at least one in four FSA users forfeit an average of over $300 each year to a missed deadline.
Consistent education and communication can help reverse this trend so your employees avoid losing money. Not only will employees appreciate the information, but your efforts may contribute to improved re-enrollment for years to come.
Educating employees is not only the right thing to do, but employees say they expect to receive education alerts via email and text from their employer, and many have even suggested that they would be willing to pay for those alerts.
According to the VISA survey, 79% of people with an FSA said they believe they could better manage and use their FSA funds if they received regular email or text alerts, and 47% would even be willing to pay for alerts about their remaining FSA balance.
FSA reminder communication templates
If your HR team is interested in benefits retention and increasing employee satisfaction, you can’t afford to miss out on reminding employees about the upcoming FSA deadline. To make this task easier in the coming days, here are three communications templates that you can use as plug-and-play FSA deadline reminders with your workforce.
If you have a Dec. 31 FSA deadline with no carryover or grace period option
Attention: This is a helpful reminder that your flexible spending account (FSA) deadline is December 31, 2023. If you have any remaining funds in your FSA, you must spend those funds before the end of the year. Any money in your FSA after December 31 will be forfeited.
If you have a Dec. 31 FSA deadline with up to $610 carryover option
Attention: This is a helpful reminder that your flexible spending account (FSA) deadline is December 31, 2023. While our company-sponsored FSA does allow you to carry over up to $610 from 2023 to your 2024 balance, if you have more than $610 in your account right now, you will need to spend those extra dollars by December 31 to avoid forfeiting that money. Now is the time to use the remaining funds before the time runs out.
If you have a Dec. 31 FSA deadline with a grace period option
Attention: This is a helpful reminder that your flexible spending account (FSA) deadline is December 31, 2023. Our company-sponsored FSA has a grace period of 2.5 months which allows you to continue to spend down your 2023 FSA dollars through March 15, 2024. However, now is the time to check your FSA balance and make a plan so you spend your remaining funds effectively.
Explanation of use
It can also be helpful to provide a reminder on how employees can use their FSA dollars. Here are two helpful explanation templates:
If you have a Dec. 31 FSA deadline with or without carryover, with no grace period option
Not sure how to use FSA dollars? Start by submitting a claim to reimburse yourself for any outstanding qualified medical expenses you might have, including dental and vision-related costs, outstanding copays or coinsurance, virtual mental health services, a year-end exam or an elective medical procedure. You can also spend remaining FSA funds on products you and your family need to stay healthy every day, including over-the-counter medications, acne and skincare, pain relief products, diabetes supplies, baby health products, menstrual care products, and much more.
To explore what’s eligible and find the best fit for your family, use this searchable eligibility list. You can shop FSA Store up until midnight on December 31 and be assured that your FSA card is charged within the 2023 calendar year. This is important because any expenses charged after December 31 will be applied to 2024 FSA funds, not 2023.
If you have a Dec. 31 FSA deadline with a grace period option
Not sure how to use FSA dollars? Start by submitting a claim to reimburse yourself for any outstanding qualified medical expenses you might have, including dental and vision-related costs, outstanding copays and coinsurance, virtual mental health services, a year-end exam or elective medical procedure. You can also spend remaining FSA funds on products you and your family need to stay healthy every day, including over-the-counter medications, acne and skincare, pain relief products, diabetes supplies, baby health products, menstrual care products and much more. To explore what’s eligible and find the best fit for your family, use the searchable eligibility list.
It’s not too late to communicate about the FSA deadline to your employees and to help them make the most of their tax-free healthcare funds. In the process, you can help them prepare for a healthy new year.