The State System offers a carryover for the Health Care FSA, which permits participants to rollover unused Health Care FSA funds into the following calendar year. Any remaining balances exceeding the carryover limit will be forfeited. Your carryover balance is in additional to your annual election. Even if you don't make an election for the following year, your balance will still carry over.
The Day Care FSA does not have a carryover and must be used for day care expenses incurred DURING the plan year or the money is forfeited.
- The current carryover from 2026 into 2027 is $660
- The new carryover from 2027 into 2028 is $680
*Any carryover amount less than $5 will not carry over into the next calendar year*
Accessing Carryover Funds
Carryover amounts will be available mid-April 2027.
Run-out Period
For both the Health Care FSA and Day Care FSA, you can submit 2026 expenses during the run-out period from January 1, 2027 - March 31, 2027.
Health Care FSA
After March 31, up to $660 left over in your 2026 health care FSA will move over to your 2027 health care FSA. Any 2026 health care FSA balance over $660 will be forfeited.
Day Care FSA
After March 31, any 2026 day care FSA balance will be forfeited.
Submitting Expenses During the Run-Out
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 of 2026 year expenses.
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 2027 Health Care FSA, you can use your spending card beginning January 1, 2027. If you did not elect a 2027 Health Care FSA, but have a carryover, you will be provided with a FSA spending card in April 2027 (if you do already have one).