The IRS regulations state your FSA election is irrevocable once the plan year has begun, except in the event of a qualifying family status change. The IRS Section 125-4 Change in Election regulations outlines in detail the events that will allow you to revoke your current election and make a new election for the remainder of the plan. The change in election must be consistent with the event allowing the change.

Is there a limit to the dollar amount I may reduce or increase my election?

Yes, you may not increase your election to more than what the plan maximum will allow. Also, you may not reduce your election to less than the greatest of your current year to date contributions, current year to date reimbursements, or current available balance.

How does a mid-year election change effect my reimbursements?

You can only be reimbursed for qualifying expenses, from the election that was in place at the time the expense was incurred.

What if I have expenses that were incurred prior to the effective date of my election change that have not been reimbursed?

If you have expenses incurred prior to the change in election and you have not yet submitted for reimbursement, you may be reimbursed up to the amount of your original annual election minus any previous year to date reimbursements.

May I submit for expenses incurred prior to my election change against my new election balance?

No, any services incurred prior to the effective date of the election change are not eligible for reimbursement under the new election balance even if the previous balance has been depleted.

What if I do not have expenses to submit against my prior annual election?

If you did not incur any expenses or do not have additional expense to submit for reimbursement against your prior annual election, the balance of the prior annual election is forfeited.

How many times during the plan year may I change my election?

Provided that you have a qualifying event that will allow for a mid-year election change, you may change your election up to twice in a plan year.