Uniform coverage rule
Certified Financial Planner glossary · Certified Financial Planner
Definition
The requirement that a health flexible spending account’s full annual election be available from the first day of the plan year.
Uniform coverage rule in plain English
An employee elects 3,000 into a health FSA in January, spends 2,800 on surgery in February, and has only contributed a couple hundred dollars so far. The uniform coverage rule requires that a health FSA's full annual election be available from the first day of the plan year. The plan cannot limit reimbursement to year-to-date payroll deferrals. Dependent-care FSAs do not follow the same uniform-coverage logic, so do not mix the two. Health FSA coverage is front-loaded; payroll catch-up is the employer's problem.
Related Certified Financial Planner terms
Certified Financial Planner practice questions · Certified Financial Planner flashcards · Certified Financial Planner study guide