Allocating your funds upfront is an important step in how your spending account works. Here’s why it’s necessary:
CRA Compliance
Flexible Benefits, like Health Spending Accounts (HSAs) and Wellness Spending Accounts (WSAs), must follow CRA rules. These rules require the plan to have an element of risk, similar to a plan of insurance. Allocating all your funds upfront ensures the plan remains compliant and operates as intended.
Tips for Allocating Your Funds
Plan Ahead: Think about your expected expenses and how you’ll use your benefits throughout the year.
Ask Questions: If you’re unsure about how to allocate, our support team is here to help.
Set Reminders: Don’t wait until the last minute—allocations must be finalized before the deadline.
By making your allocation choices upfront, you ensure that your account runs smoothly and stays in line with CRA requirements. Plus, it gives you control over how your funds are used for the year!