The new IRS Notice 2005-42 will allow employers to modify Flexible Spending Arrangements (FSAs) to extend the grace period for reimbursement of health and dependent care expenses up to 2-1/2 months after the end of your plan year. Claims incurred during this grace period would be eligible for reimbursement. You as the employer, can amend your current FSA plan to accept this new ruling. If you would like to have this option for your group, please contact us at:

Savers Administrative Services
David Roberson (336)759-3888, x107
(800)949-0311, x107
or email us at: flex@saversadmin.com

At your request, we will prepare your amendment to reflect this change and forward to you for your signature. There is no additional charge.