When can I change my FSA election amount?

Question

Specifically, my employer is changing our health coverage slightly, which will raise my expected out of pocket for the year. Wouldn't this qualify as a significant change of coverage and therefore permit an adjust to the FSA account?

Please provide sources. I need ammo.

Answer 1

Changes can only be made at the end of the plan year. the plan year is determined by the employer. If you made your annual election in December then you can make another change in December. This is an IRS rule. http://www.irs.gov/publications/p502/ind...

Answer 2

I agree with Leesb R.   Changes can be made only once a year.

This does raise an interesting issue though.  With more and more health plans going to larger deductibles, where does this leave us when our coverage changes in mid-year?  Lucky for me, my employer has coordinated our open enrollment for Health insurance with the start of the FSA year so they both start at the same time.    

As a point of interest, our FSA year starts July 1.

Answer 3

there is a very limited open enrollment period - in my company is was Nov-Mid Dec last year for the 2008 benefit year - you'll probably have to wait until end of 2008 to change your annual amount for 2009 - you have no ammo - change of coverage is irrelevant