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 2020.  For example:

• You pledged $1,000 to your medical FSA for 2020 and the same amount again in 2021.
• On December 31, 2020, 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 2021.
• On January 1, 2021, you will have $1,500 in your medical FSA ($500 from 2020 that carried over plus $1,000 as your new election for 2021).
• PayFlex will use the $500 leftover from 2020 on any of your claims in 2021 before using the $1,000 for 2021.