No, the carry-over funds are deposited into your account and will not affect your current payroll deductions. The carry-over funds are added to your available funds for the plan year. For example:
- You have $500 in 2019 medical FSA funds to be carried over in January of 2020.
- You pledge $1,200 in your 2020 medical FSA and the payroll deduction will be $50 per paycheck.
- In January 2018, your 2019 carry-over funds in the amount of $500 are deposited into your current active account. Your total medical FSA funds available for 2020 now amount to: $1,700.
- Your contributions will continue to be the $50 payroll deduction from your paycheck until the end of the year.