How do I know if I have a Healthcare FSA with Carryover?
Is the carryover option for Healthcare FSAs only, or is it available with other benefit accounts?
The carryover option is available with a Healthcare FSA and an HSA-Compatible FSA. It is not available with a Dependent Care FSA.
When will the funds remaining in my Heatlhcare FSA for this plan year carry over into the new plan year?
Your funds will be available on the first day of the new plan year. The amount that's carried over is determined at the end of any run-out period for the previous plan year.
Does the carryover amount count against the $2,550 maximum I'm able to contribute to my Healthcare FSA for this plan year?
Good news! No. You can still contribute up to $2,550 (or the limit set by your employer) even if you carry over $500 from the previous plan year.
Can my employer offer the carryover and a grace period?
Sorry, your employer can only offer a Healthcare FSA with a grace period OR the carryover option during the same plan year—not both.
Is there a minimum or a maximum amount that can be carried over?
Your employer can choose to allow a carryover of any amount up to $500 per participating employee per plan year. WageWorks encourages all employers to allow the maximum $500 carryover amount.
When is my carryover balance available for me to use?
Your carryover balance is available to you on the first day of the new plan year.The carryover amount is available to pay 2014 expenses and 2015 expenses during the 2014 plan run-out period. You do not have to make a new contribution election for the new plan year to receive the carryover funds.
What happens if I have a carryover balance but I do not re-elect a Healthcare FSA?
If you don’t re-elect a Healthcare FSA, your employer may make some options available to you, including:
- Your carryover balance may be defaulted to a Healthcare FSA for the new plan year automatically; or
- Your carryover balance may default to an HSA-Compatible FSA; or
- You may forfeit your previous plan year balance rather than carry it over to the new plan year.
Ask your employer which option applies to you.
Do carryover funds affect my coverage?
No. If you are eligible for the carryover (if you have a carryover balance and did not forfeit the carryover), you will have the available carryover balance transferred into the 2014 plan as an adjustment—with the same coverage (limited or standard) as the 2014 plan unless your employer directs otherwise.
Which funds will be used first—the funds in my 2015 Healthcare FSA or my carryover balance from my 2014 Healthcare FSA during the run-out period?
The 2015 (current) plan year will pay first and the 2014 (carryover) plan will pay second. You get the best use of your funds by having the current plan year pay first, and the previous plan year pay second.
How long can funds be carried over? Are multiple year carryovers permissible? (1)
Great news! Funds may be carried over indefinitely. There is no time limit. Keep in mind that your employer may choose to limit the years that carried over funds can be accessed. For example, if you have unused funds from Plan Year 1, you make no election in Plan Year 2, and you don’t submit any claims for Plan Year 1, your employer may choose to have the unused amounts of Plan Year 1 expire at the end of the Plan Year 2. Ask your employer if there are any limits to how long your unused funds may carry over from one plan year to the next.
What happens to my carryover balance if I quit my job before I’ve used it?
Sorry, we can't be too specific about this answer because it depends on your employer's Healthcare FSA program. Often employers offer a period of time when you can still submit claims so you can spend down funds remaining in your Healthcare FSA. You may also be able to extend the period of time to use your Healthcare FSA funds if you elect COBRA after you leave your job. But please keep in mind that you need to incur all eligible expenses before your last day of work. We recommend asking your employer about your options.
If I have a carryover balance and am fired or laid off midyear, can I take the funds with me?
Sorry, carryover balances are nontransferable. You must be an active participant on the last day of the plan year in order to have funds carried over to the next plan year.
May I carry over a balance of up to $500 if my maximum Healthcare FSA contribution limit is less than $2,550?
Yes, the $500 carryover option is available for any Healthcare FSA contribution level your employer elects.
To be eligible to carry over a Healthcare FSA balance, do I have to re-enroll in a Healthcare FSA in the new year?
No. If you don't re-enroll in a Healthcare FSA for the new plan year, but you still have funds remaining in your account to be carried over, you will be automatically re-enrolled in a Healthcare FSA for the new plan year with an election amount of $0.
Is there a deadline for using my carryover balance every year?
No. If any funds remain in your Healthcare FSA at the end of the current plan year, you carry over up to $500 into the subsequent year, indefinitely. Your carryover balance can be used at any time for expenses incurred in the new plan year (in addition to the elected payroll deductions).
How will I know if I have a carryover balance?
Log into your WageWorks account
. Your account balance, including your carryover balance, and other important account information will show up in a pop-up window. This window will pop up each time you log into your WageWorks account before the plan end date. Once the new plan year begins, WageWorks will send you information about your new year plan account.
I was enrolled in a Healthcare FSA in 2014. In 2015, I enrolled in an HSA. Am I still eligible to participate in an HSA if I have a carryover balance from my 2014 Healthcare FSA?
If your employer offers a Healthcare FSA with Carryover, you should elect an HSA-Compatible FSA for the new plan year so you can carry over up to $500 and contribute to an HSA to maximize your savings. If you don’t enroll in an HSA-Compatible FSA, you forfeit the remaining balance in your Healthcare FSA.