Participants are only allowed to enroll in an account once a year, which is also known as the open enrollment period. During this time you decide how much money you wish to put in your account. Please note that participants cannot change their annual election amount after open enrollment unless they experience a qualifying event, which includes the following:
- a change in legal status (e.g., marriage, death of spouse, divorce, legal separation or annulment);
- a change in the number of dependents due to events such as birth or adoption;
- a termination or commencement of employment of a spouse or dependent; and,
- a change in the cost of dependent care expenses.
The annual election amount will be evenly divided over the course of a Plan year before taxes are withheld, thus increasing employees’ take-home pay.