The IRS allows employers to offer a $500 carryover provision for a Health Care FSA plan, which permits participants to
rollover up to $500 in unused FSA funds to the following calendar year. Any remaining balances which exceed $500 will
be forfeited. The State System offers a $500 carryover for the Health Care FSA. The Dependent Care however, must be
used DURING the plan year or money is forfeited.
*Any carryover amount less than $5 will not carry over into the next calendar year*
Accessing Carryover Funds
Carryover amounts will be available at the beginning of April 2020.
Run-out Period
You can submit 2019 expenses during the run-out period from January 1, 2020 - March 31, 2020. After March 31, up to $500 left over in your 2019 health care FSA will move over to your 2020 health care FSA. Any 2019 health care FSA balance over $500 will be forfeited.
Submitting 2020 Expenses
You may only be reimbursed for 2020 expenses during the run-out period if you elected a 2020 Health Care FSA. If you do not have a current plan year election, you will need to wait until after carryover has occurred (April) to submit for reimbursement. You do not need to elect a current year Health Care FSA for your money to carryover, however you will not be able to access your funds until April when the carryover has occurred.
Using your Spending Account Card
If you elected a 2020 Health Care FSA, you can use your spending card beginning January 1, 2020. If you did not elect a 2020 Health Care FSA, but have a carryover, you will be provided with a FSA spending card in April 2020.
