Recipation of Unused Funds of Tasc: A Look Behind The Process

What happens to unused TASC money?

Introduction

Many employers offer a Flexible Spending Account (FSA) or a Health Reimbursement Arrangement (HRA) as part of their employee benefits package. These accounts allow employees to set aside pre-tax money to pay for eligible medical expenses. TASC (Total Administrative Services Corporation) is one of the leading providers of these types of benefit accounts. However, one common question that arises is what happens to unused TASC money at the end of the plan year.

Rollover and Runout Period

Any unused funds in a TASC account that exceed the rollover maximum are forfeited to the employer. Rollover occurs after the transition period, also known as the claims runout period, ends. During this runout period, participants in past and current plan years may request reimbursements from both respective plan years. This means that any funds remaining in the account after the runout period will be lost if they exceed the rollover limit.

Forfeiture of Unused Funds

When funds are forfeited to the employer, they are no longer available to the employee for reimbursement of eligible expenses. This is an important consideration for participants in TASC accounts, as it encourages them to carefully estimate their healthcare expenses and not contribute more than they expect to spend. By forfeiting unused funds, employers are able to maintain the financial stability of the benefit program and avoid any potential liability for carrying over large balances.

Importance of Planning

Given that any unused funds in a TASC account are forfeited to the employer, it is crucial for participants to plan their contributions accordingly. By estimating their healthcare expenses for the upcoming year, employees can determine how much to contribute to their TASC account. It is important to strike a balance between setting aside enough funds to cover anticipated expenses and not overcontributing to avoid forfeiting unused funds.

Options to Maximize TASC Benefits

While unused TASC funds may be forfeited, there are certain strategies that participants can employ to maximize the benefits of their TASC account:

1. Review Eligible Expenses: Participants should familiarize themselves with the list of eligible expenses that can be reimbursed from their TASC account. By understanding what can be claimed, they can make sure to utilize their funds for qualified expenses.

2. Plan Ahead: Planning ahead and estimating healthcare expenses can help participants determine the appropriate contribution amount to their TASC account. This can help avoid overcontributing and forfeiting unused funds.

3. Utilize Rollover: Participants should take advantage of the rollover feature if it is available. Rollover allows a portion of unused funds to be carried over to the next plan year, reducing the risk of forfeiture.

4. Submit Timely Claims: Participants should be aware of the runout period and submit claims for reimbursement in a timely manner. By doing so, they can ensure that they utilize their TASC funds before the deadline.

5. Communicate with TASC: If participants have any questions or concerns about their TASC account, they should reach out to TASC for assistance. TASC representatives can provide guidance on account balances, eligible expenses, and other related matters.

In conclusion, any unused funds in a TASC account that exceed the rollover maximum are forfeited to the employer. This emphasizes the importance of careful planning and estimating healthcare expenses to avoid overcontributing. Participants should familiarize themselves with eligible expenses, plan ahead, utilize rollover if available, submit timely claims, and communicate with TASC for any assistance. By following these strategies, participants can maximize the benefits of their TASC account and avoid losing unused funds.