It is prohibited by IRS law. This is why we encourage FSAFEDS participants to contribute conservatively, especially in their first year with FSAFEDS. This is also why FSAFEDS offers a grace period so you can continue to incur eligible expenses until March 15 of the following year, and can continue to file claims until April 30 of that year. By having 14.5 months to incur expenses and 16 months to file claims, you reduce the risk of forfeiting any contributions at the end of the benefit period.
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