FSA – Carry Over to Next Plan Year

 

For State and Higher Education employees who in 2017 have either a healthcare FSA or limited purpose FSA, they may carry over up to $500 into 2018.  Any balances in those accounts greater than $500 on December 31, 2017, will be forfeited.  Members can log into the PayFlex website at any time and view their claims, balances, and detailed activity for the flex accounts.  Local Education and Local Government plan members who are considering enrolling in a CDHP for 2018 should ensure that they are not enrolled in a healthcare FSA with their employer in 2018 and any healthcare FSA that they have in 2017 has a zero balance by December 31, 2017.

 

Question:

Will the prior plan year carry-over funds be available on January 1, 2018, for the members to use in the new plan year?

 

Answer:

Members can carry over up to $500 in their Medical FSA and Limited FSA from 2017 to 2018.  We automatically pay claims out of the carry over balance first, and then go into the new plan year election. Yes, we will use carry-over funds first before using any new elections.

 

NOTEThere is no carryover provision on the Dependent Care Accounts and any funds remaining on April 30, 2018 will be forfeited.

 

Question:

The $500 maximum carryover for FSM and LFSA will be effective for the ending of 2017 plan year going into the new 2018 plan year thus eliminating any grace period.   What is the deadline for members to submit their 2017 FSAM and LFSA claims to PayFlex? 

 

Answer

For the regular Medical FSA, Limited FSA and Dependent Care FSA, all claims have to be incurred between 1/1/17 and 12/31/17.  The State allows members 120 days from the end of the plan year to submit claims for the prior year.  Members have until 4/30/2018 to submit claims that were incurred between 1/1/2017 and 12/31/2017. 

 

Question:

Is the carry-over automatic or do the members have to elect to carryover?

 

Answer

It is automatic. 

 

Example:  If you have $500 or less in a healthcare FSA or L-FSA on 12/31/2017 it will automatically carry over with no action needed by the member as long as they enrolled in 2018.   If, for example, you have $600 in either account on 12/31, then $500 will carry over and $100 will be forfeited.

 

Question:

If I choose to enroll in the CDHP in 2018 will my FSA Medical funds still carry-over from 2017?

 

Answer:

No, you must deplete your 2017 FSAM and LFSA by December 31, 2017.

 

Question:

Can the carry-over FSA amount be used all year or does it have to be used by 4/30?

 

Answer:

It can be used all year.

 

Question:

Does the dependent care flex account (DC-FSA) allow any type of carry over into the following year? 

 

Answer

No.    Employees may not carry over any unused dependent care funds into the following year; however, they do have until April 30th of the following year to file claims for the previous year but the expenses have to be incurred in the previous year.

 

 

 

.   

 

 

 

Have more questions? Submit a request