FSA & HSA OPEN ENROLLMENT

Q: When is FSA open enrollment?

A: During November, employees may enroll online to FSA, HSA, LPFSA, DCA, and parking & transit FSA plans. Unlike mid-year open enrollment, you must re-enroll in FSA & HSA accounts each year to continue deductions. Per IRS regulations, previous year's elections do not automatically renew.

All FSA/HSA plan elections will have a January 1 effective date.

If you miss our online enrollment period, there will be another chance to enroll through December 31 using a form. Because this is past the open enrollment period, funds may not be immediately available on January 1. To ensure timely setup, enroll during the online enrollment period.

Q: How much should I save?

A: Deciding how much to contribute each year to your tax-advantaged benefit account is, of course, a personal decision that depends on your family’s expected health expenses and budget. It also depends on whether you are utilizing an FSA, which is use-it-or-lose-it each calendar year, or an HSA, which carries over all unused funds.

For advice, plus short-term and long-term interactive calculators, visit our FSA/HSA resource:

Q: Will my current elections roll over if I take no action?

A: FSA and HSA elections do not automatically renew each year.

To comply with IRS regulations, employees must re-enroll in the FSA and HSA benefit each year if they wish to continue participation.

Q: How will these benefits be deducted?

A: Deductions for your year-end benefit elections will begin on your first paycheck in January. Please be sure to check your first paycheck of the new year for accuracy.

FSA and HSA contributions are taken from your paycheck pre-tax.

Q: Can I have both FSA and HSA?

A: IRS rules state you cannot have both an HSA and FSA in the same tax year. This distinction is applied at the household level. For example, you cannot have an HSA in the same plan year that your spouse has an FSA.

However, there are exceptions. You can hold an HSA OR FSA concurrently with these other tax-advantaged savings accounts:

• DCA to pay for childcare expenses
• LPFSA to pay for dental and vision costs
• Parking and transit commuting FSAs

If you currently have an FSA and plan to enroll in an HSA next year, up to a certain amount of leftover FSA funds will roll over to an LPFSA that can be used for qualified dental & vision costs along with your HSA. See IRS Publication 969 for specific amounts.

Q: What if I want to make changes mid-year?

A: Since each plan works differently, the IRS regulates changes in different ways:

• FSA: Generally speaking, FSA selections are usually locked in for the year once you set them during your enrollment period. You may make changes or enroll mid-year within 30 days of a federally-approved qualifying event. Please note, changes must be in alignment with that event.
• HSA: You can elect, stop, or change the amount of pay you defer into your HSA at any time for any reason, not just during annual enrollment. Please note, you must be actively enrolled in a qualifying high-deductible health plan (HDHP) to be eligible to contribute to an HSA.
• LPFSA: Like the FSA, your LPFSA selections are generally locked in for the year, but you may make changes in alignment with a federally-approved qualifying event.
• DCA: Like the FSA, your DCA selections are generally locked in and you may make changes with a qualifying event. You do have more latitude here, though, as you can make changes that align with your changing childcare costs throughout the year.
• Parking & Transit FSA: You may enroll or change these benefits at any time.

Q: When is my next opportunity to enroll?

A: There are several periods during which you can enroll or make changes to your benefits:

• Open enrollment: If you miss online open enrollment, your next opportunity will be next year's open enrollment for the following plan year. Nextep's FSA/HSA enrollment period is generally held each year in November, with an effective date of January 1.
• New hires: If you are a newly-eligible employee, you must submit benefit enrollments within 30 days of your eligibility date. Your next opportunity to make changes is during open enrollment.
• Qualifying event: You may also make changes that align with a qualifying event, such as the birth of a child, marriage, divorce, or job loss. Changes must be made within 30 days of the qualifying event.
• Note: A qualifying event allows an employee to enroll or change coverage levels within a plan. It does not allow an employee to switch plans or to make a change that is inconsistent with the qualifying event.

Q: What about other plans?

A: We have additional plans on different enrollment schedules:

• Mid-year open enrollment: Most non-FSA/HSA benefit plans are selected during mid-year open enrollment, generally held each year in August with an effective date of October 1. Plans include Medical, Dental, Vision, Disability, AD&D and Life, Group Whole Life, Critical Illness, Accident, Hospital, Pet, Legal, Identity Theft, and Lifestyle Benefits.
• Employee assistance program (EAP): Your benefits-eligible employees have instant, free access to Nextep's EAP if your company offers one of Nextep's medical plans.
• Retirement accounts: Once eligible, you may enroll or change your 401(k) at the first of each month. Exception: You may change contributions to 0% at any time.
• Voluntary benefits: You may enroll or change these benefits on a month-to-month basis: pet, legal, and ID theft protection.