Methods of Withdrawal
In recent years, the FSA debit card was developed to eliminate "double-dipping," by allowing employees to access the FSA directly. It also simplified the substantiation requirement, which required labor-intensive claims processing. The debit card also enhances the effect of "pre-funding" medical FSAs. However, the substantiation requirement itself did not go away, and has even been expanded on by the IRS for the debit-card environment; therefore, withdrawal issues still remain for FSAs.
According to Celent, as of May 2006, there were approximately 6 million debit cards in the market tied to an FSA account, representing 25% of the FSA participating community. Celent projects that FSA cards will increase FSA adoption rates. The average card participation rate was around 20% as of May 2006. By 2010, it is projected this rate will increase to 85%.
Read more about this topic: Flexible Spending Account
Famous quotes containing the words methods of, methods and/or withdrawal:
“All men are equally proud. The only difference is that not all take the same methods of showing it.”
—François, Duc De La Rochefoucauld (1613–1680)
“The comparison between Coleridge and Johnson is obvious in so far as each held sway chiefly by the power of his tongue. The difference between their methods is so marked that it is tempting, but also unnecessary, to judge one to be inferior to the other. Johnson was robust, combative, and concrete; Coleridge was the opposite. The contrast was perhaps in his mind when he said of Johnson: “his bow-wow manner must have had a good deal to do with the effect produced.””
—Virginia Woolf (1882–1941)
“A separation situation is different for adults than it is for children. When we were very young children, a physical separation was interpreted as a violation of our inalienable rights....As we grew older, the withdrawal of love, whether that meant being misunderstood, mislabeled or slighted, became the separation situation we responded to.”
—Roger Gould (20th century)