What are some of the basic requirements (i.e., rules and regulations) of FSA programs?
(a) Any FSA funds in a plan participants account at the conclusion of a plan year will be forfeited to the employer. This is the use-it-or-lose-it rule. (b) A plan year must be twelve months except for a short plan year. Short plan years usually are the first plan year adopted by an employer. (c) During a plan year, reimbursement for expenses in an FSA is based on when the expenses are incurred, not when the expenses are paid. (d) Reimbursement for an FSA claim must be properly substantiated. (See Q & A 3 for Claims Procedures.
