Will my prior year medical flexible spending account (medical FSA) or limited purpose flexible spending account (L-FSA) funds carry over to the next plan year on January 1?

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 2018.  For example:

  • You pledged $1,000 to your medical FSA for 2017 and the same amount again in 2018.
  • On December 31, 2017, 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 2018.
  • On January 1, 2018, you will have $1,500 in your medical FSA ($500 from 2017 that carried over plus $1,000 as your new election for 2018).
  • PayFlex will use the $500 leftover from 2017 on any of your claims in 2018 before using the $1,000 for 2018.
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