FSAs are often overlooked, but they are essential in crafting a compelling benefits package for your clients. With the IRS offering choices between a grace period, a runout period, or a spend-down provision for plans ending, your clients have options with meaningful implications:
- A grace period provides employees with up to two and a half extra months after year-end to incur eligible expenses.
- A runout period allows claims submission for expenses incurred before the year's end, usually 60 to 90 days post year-end.
- For terminated plans, participants can use remaining balances on pre-termination expenses.
These structures impact cash flow, employee satisfaction, and administrative complexity. Encourage clients to choose based on their broad benefits strategy to maximize employee engagement and satisfaction.
As your clients’ trusted advisor, you have the opportunity to help employers make thoughtful decisions — and avoid year-end surprises. Now is a great time to talk to your clients now about how they want to structure their Anthem Spending Accounts FSA for 2026.
If you have questions, please reach out to your Anthem Sales Representative.