Any funds of $500 or less that are still in your medical FSA or L-FSA on December 31 will automatically be carried over and be available on January 1, in addition to any funds that you pledged for 2019. For example:
- You pledged $1,000 to your medical FSA for 2019 and the same amount again in 2020.
- On December 31, 2019, you have only used $400 of the $1,000, which leaves a balance of $600.
- You will forfeit $100, but the other $500 will carry over into 2020.
- On January 1, 2020, you will have $1,500 in your medical FSA ($500 from 2019 that carried over plus $1,000 as your new election for 2020).
- PayFlex will use the $500 leftover from 2018 on any of your claims in 2019 before using the $1,000 for 2020.