How to Change the Amount of a Flexible Spending Account

With a flexible spending account, you can put money away to cover medical and child care costs throughout the year. This money is tax free but must be used by the end of each year. Money left over in the FSA at the end of the year will be recovered by the IRS. This makes it important to plan ahead and monitor your yearly contributions. You should know that there are usually restrictions as to when you can change your FSA contributions.

Things You'll Need

• FSA contribution form

Instructions

1. Contact the human resources department of your employer. Ask when your open enrollment period is and the process for changing your flexible spending account contributions. Depending on how your company has the FSA set up, you may need to fill out a paper form or an online form to make changes. Your human resources department can provide you with access to these forms.

2. Fill out and return the forms at any time during the year to make changes to your dependent list. Many employers will allow you to make changes if you recently were married or divorced, had a new baby, adopted a child or took a leave of absence.

3. Fill out and return the forms if you simply want to change the amount of money you put into the FSA but do not have a change in your dependents. To make contribution changes, you usually can only do this during your employer's open enrollment period, which often occurs toward the end of each year.

References

• IRS.gov Health Savings Accounts and Other Tax-Favored Health Plans
• IRS.gov: FAQs for Government Entities Regarding Cafeteria Plans
• University of Arizona: Flexible Spending Account Program FAQs