You cannot add money to your FSA in the middle of the year unless you have a may have access to life event

FSAs are tied to your employer's plan year, which usually runs January through December. The IRS treats contributions as irrevocable — once you elect an amount during open enrollment, you cannot change it until the next enrollment period, which is typically in the fall for the following year. The only exception is a may have access to life event, which allows you to make changes outside the normal enrollment window.

If you have experienced a may have access to event, you have a limited window to notify your employer's benefits administrator, usually 30 to 60 days depending on your plan. Your employer then has up to 30 days to process the change. The new contribution amount takes effect on the date your employer approves it, not retroactively to the start of the year.

Key Takeaways

  • FSA contribution elections are locked for the plan year unless you have a may have access to life event such as marriage, divorce, birth, or loss of coverage.
  • You must report a may have access to event to your benefits administrator within 30 to 60 days, depending on your plan's rules.
  • Changes to your FSA contribution take effect on the date your employer approves them, not from the beginning of the year.
  • If you cannot change your contribution amount, you can still spend down your existing FSA balance on may be able to access expenses through the end of the plan year.

What counts as a may have access to life event for FSA changes

The IRS recognizes specific events that allow you to change your FSA election mid-year. These include marriage or divorce, birth or adoption of a child, death of a spouse or dependent, significant change in your child's custody or support status, and loss or gain of health coverage (for you, your spouse, or your dependent). A change in your spouse's employment that affects their FSA or health plan also qualifies.

Some employers add plan-specific events to their list. For example, a few plans allow changes if your out-of-pocket costs increase significantly due to a change in your health plan. Check your plan documents or ask your benefits administrator which events your employer recognizes, because the list is not the same everywhere.

How to report a life event and change your FSA contribution

Contact your employer's benefits administrator or human resources department as soon as the event occurs. You will need to provide documentation — a marriage certificate for marriage, a birth certificate for a new child, a divorce decree for divorce, or a notice of loss of coverage from your previous health plan. The exact documents required vary by employer, so ask what your plan needs before you gather paperwork.

Your employer has up to 30 days from the date you report the event to process your request and update your contribution. During that time, your old election remains in effect. Once approved, your new contribution amount begins on the effective date your employer sets, which is usually the first of the following month or the date the event occurred, depending on the plan.

What happens if you increase your FSA contribution mid-year

If your life event is approved and you increase your contribution, the additional money is divided among the remaining pay periods in the plan year. For example, if you increase your contribution by $600 and there are 6 months left in the plan year, an additional $100 will be deducted from each paycheck. You can begin spending the new balance when ready on may be able to access medical and dependent care expenses.

If you decrease your contribution because of a life event, the reduction takes effect on the date your employer approves it. You keep the balance you have already accumulated in your account and can continue to spend it on may be able to access expenses through the end of the plan year.

Spending your existing FSA balance if you cannot add more money

If you do not have a may have access to life event, you cannot increase your contribution, but you can still use the money you already set aside. Review your plan documents or your FSA provider's website to see which expenses are may be able to access — medical expenses, dental work, vision care, and dependent care are the most common. Keep receipts for all expenses because you may need to submit them as proof of may be able to access.

Many FSAs include a grace period of up to 2.5 months after the plan year ends, during which you can spend down your remaining balance on expenses you incurred during the grace period. Some plans instead offer a carryover option that lets you roll up to $640 (as of 2024, though this amount changes annually) into the next plan year. Ask your benefits administrator which option your plan uses, because you cannot have both.

Timing matters when you report a may have access to event

The 30- to 60-day window to report a may have access to event is strict. If you miss the important date, your employer is not required to process the change, and you will be locked into your original election for the rest of the plan year. Mark the date of your event on your calendar and contact benefits within two weeks to avoid running out of time.

Some employers allow you to report events online through their benefits portal, while others require a phone call or a form submitted in person. Check your company's benefits website or employee handbook to see which method is fastest for your situation.

Frequently Asked Questions

Can I add money to my FSA if I got married mid-year?

Yes, marriage is a may have access to life event. You have 30 to 60 days from your wedding date to notify your benefits administrator. Bring your marriage certificate, and your employer will process the change within 30 days. Your new contribution amount will be divided among the remaining pay periods in the plan year.

What if I had a baby and want to increase my dependent care FSA?

Birth of a child is a may have access to event for both health care and dependent care FSAs. Report the birth to your benefits administrator within 30 to 60 days with a copy of the birth certificate. You can then increase your dependent care FSA contribution for the remainder of the plan year to cover childcare costs.

Can I decrease my FSA contribution if I lost my job mid-year?

Loss of health coverage is a may have access to event. You can decrease or cancel your FSA contribution, but you keep the balance you have already accumulated. You can continue to spend that money on may be able to access expenses through the end of the plan year or during the grace period if your plan offers one.

What happens to my FSA money if I do not spend it by year-end?

FSAs are subject to a use-it-or-lose-it rule. Money you do not spend by the end of the plan year or grace period is forfeited. Some plans offer a carryover option that lets you roll up to $640 into the next year. Check your plan documents to see which option applies to you.

Can I change my FSA election during open enrollment?

Yes. Open enrollment is the standard time to change your FSA contribution for the next plan year. You can increase, decrease, or cancel your election without a may have access to event. Changes made during open enrollment take effect on the first day of the next plan year.