Will the deposit of the carry-over funds reduce my current payroll deduction for the pledge I have selected this year?

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 2020 medical FSA funds to be carried over in January of 2021.
  • You pledge $1,200 in your 2021 medical FSA and the payroll deduction will be $50 per paycheck.
  • In January 2021, your 2020  carry-over funds in the amount of $500 are deposited into your current active account. Your total medical FSA funds available for 2021 now amount to: $1,700.
  • Your contributions will continue to be the $50 payroll deduction from your paycheck until the end of the year.
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