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:
“If men got pregnant, there would be safe, reliable methods of birth control. They’d be inexpensive, too.”
—Anna Quindlen (b. 1952)
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—William Howard Taft (1857–1930)
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—Roger Gould (20th century)