If your allocation window has closed and you’re already partway through your benefit year, then, unfortunately, yes—it is too late to allocate your balance for the current year. Once the allocation window has passed, you are no longer able to make changes.
Here’s why this is the case and what you need to know for next time.
Why You Can't Change Your Allocation After the Window Closes
The allocation process allows you to decide how your benefits will be used for the year. With the myFlexplan, you can choose how to allocate your funds between a Health Spending Account (HSA), Wellness Spending Account (WSA), and possibly other options like Registered Retirement Savings Plans (RRSPs) or Tax-Free Savings Accounts (TFSAs). However, these decisions must be made during a specific time frame—the Allocation Window.
The Allocation Window typically lasts for 30 days from the start of your benefit year, giving you time to plan your allocation based on your anticipated expenses for the year. But once that window closes, your allocation choices are locked in.
The reason for this deadline is not just a myHSA policy, but a requirement by the Canada Revenue Agency (CRA). According to CRA guidelines, employees must allocate their benefits before incurring any expenses to ensure correct tax treatment. This rule is similar to how you can't buy insurance after an event has occurred—you must plan in advance.
Planning for Future Allocations
If you missed the allocation window this time, here are some tips for making sure you’re prepared next year:
Understand Your Needs
Take stock of your health and wellness goals. Do you have regular medical expenses or expect any major health-related costs in the coming year? This will help you decide how much to allocate to your HSA or WSA.
Review All Options
Familiarize yourself with what each plan offers, such as coverage, limitations, and eligible expenses. This will ensure you’re making an informed decision about how to allocate your funds.
Consider Other Coverage
If you have coverage through a spouse or another health insurance plan, factor that into your decision. Remember, health insurance is typically used before your HSA, so consider what other plans will cover.
Project Your Expenses
Estimate your likely healthcare and wellness costs based on past experiences or upcoming needs. This will give you a clearer idea of how to allocate your benefits most effectively.
Make Timely Decisions
The allocation window is only open for 30 days, so set a reminder and use that time to make sure your choices align with your needs for the year.
If you have any questions or need assistance during your allocation window in the future, don’t hesitate to contact our support team at support@getmyhsa.com. We’re here to help!