Generally, you may carry over up to $500 of unused Health FSA contributions from the current year to use in the following year. For 2021 and 2022, all unused carryover amount may be rolled to the following year (see exceptions due to COVID). Unused contributions carried over to the next year are forfeited if not used in that year.
With the carryover option, you can take advantage of this great pre-tax benefit, knowing unused contributions will still be there for you one more year, as long as you remain employed by the State.
Flexible Spending Accounts
Frequently Asked Questions about the Health FSA Carryover Option. (Print FAQ)
How much can I carry over?
How long are the carryover funds available?
When are carryover funds made available to me?
Is the carryover benefit automatically applied to my account?
Do I need to be enrolled in the next plan year to take advantage of the carryover?
Does the grace period for health FSA still apply?
What about Dependent Care FSA claims?
Does the carryover option impact the IRS maximum deduction for Health FSA?
If I don’t use my $500 carryover next year, can I carry it over again the following year?
What happens to any unused funds over $500?
What claims can be reimbursed with carryover funds?
What is the deadline for using the carryover funds?
Which funds are used first (current deductions or carryover funds)?