List items for Carryover FAQ
You may carry over up to the annual carryover maximum of unused Health FSA contributions from the current year to use in the following year. Unused contributions carried over to the next year are forfeited if not used in that year.
The 2025 carryover maximum is $640.
The deadline to incur claims is 12/31 of the following plan year only. The deadline for submitting claims for any carryover funds is April 15 of the year thereafter.
December 31 of the following plan year, as long as you remain employed.
January 1st of the following plan year as long as you are employed.
Yes. All current plan year Health FSA plan participants still employed on January 1st of the following plan year are eligible to use the carryover option.
No. If you are enrolled in a plan year and will have carryover funds, you do not need to enroll for the following plan year to submit claims incurred in the new year. You must be employed in the new year but do not need to be enrolled in the plan. If you leave employment during the new year, your ability to use the funds ends at the end of the month in which you leave.
No. The carryover option replaced the Health FSA grace period option. Employers cannot offer both options in the same plan year.
The carryover option does not apply to Dependent Care FSA accounts. The grace period option remains available.
No. The carryover amount is added to your payroll deduction election for the new plan year.
No. The maximum carryover amount, if unused, may be rolled to the following plan year only. You must remain employed to submit claims for carryover funds. (See example below)
Unused funds over the carryover amount are forfeited to the plan. The amount is determined after the April 15 claim filing deadline.
Carryover funds may be used for eligible expenses incurred in the next plan year, as long as you remain employed.
Your carryover dollars are the first to be spent when you submit a claim in the new plan year. Carryover funds must be used in the next calendar year or they will be forfeited.