If your plan year follows the calendar, late March is either:
- the middle of a runout for prior-year expenses, or
- the moment employees notice a carryover balance and wonder why this year’s election looks weird.
(Those are alternative designs — not a combo platter.)
Messaging that works
Skip the regulation voice. Try:
“If you still have 2025 health FSA dollars in limbo, check your runout end date and submit claims with dates of service in 2025. Carryover balances, if our plan allows them, show as available for 2026 expenses and don’t reduce your new election ceiling the way people fear.”
For 2026, remember the carryover cap is $680 when the plan uses carryover instead of a grace period.
Operational cleanup
- Sweep unsubstantiated debit card transactions before they age into ugly payroll recovery.
- Dependent care participants saving daycare receipts in email — nudge them now, not in December.
- Confirm terminated employees understand any COBRA or spend-down rights that apply to their health FSA/HRA.
A short Q1 reminder email outperforms a perfect December “use it or lose it” campaign that everyone ignored during the holidays.