Calendar Year versus Plan Year — and why it matters for your benefits

ADP Open Enrollment Calendar Year

Think of a 12-month period of time and chances are it’s Jan. 1 to Dec. 31, known as Calendar Year.

Benefits coverage provided through the ADP TotalSource Health and Welfare Plan is based on a Plan Year (June 1 through May 31 of the following year).

Knowing these subtle differences means a better understanding for the coverage options that you choose, like when things begin and end.

How does this apply to deductibles and out-of-pocket (OOP) maximums?

While benefits coverage is based on the ADP TotalSource Plan Year, deductible and OOP maximums are based on Calendar Year. You can find more on these topics in the Summary of Benefits and Coverage (SBC) section of your enrollment kit, and online at

What about my deductible rollover experience?

Stay with the same insurance carrier through Open Enrollment and your deductible rolls over when the plan renews on June 1. Changing carriers means you’ll need to contact your new insurance provider for specific rollover instructions.

What if I have a Health Savings Account (HSA)?

You should know that HSA contribution limits are based on Calendar Year, and contributions may be updated throughout the Calendar Year.

What about different Flexible Spending Accounts (FSAs)?

  • Health Care FSA (HCFSA) and Dependent Care FSA (DCFSA) elections are applicable per Plan Year, though IRS contribution limits apply differently for these products.
  • HCFSA contribution limits are based on the enrolled Plan Year, as are HCFSA enrollment and contributions elections. IRS contribution limits follow Calendar Year, so take this into consideration to avoid excess contributions included in your taxable wages and income.
  • All FSA expenses must be incurred by the end of the respective Plan Year in which you are enrolled unless you terminate coverage earlier. A certain amount of HCFSA, or limited HCFSA, balances may be carried over into the next Plan Year if you remain eligible to participate. There is no carry over allowance for DCFSA.

And how about dental and vision coverage?

Dental allowances are structured on Calendar Year (resets Jan. 1) and vision allowances with VSP go by Plan Year (resets June 1).

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