Health Care FSA (HCFSA)

What happens to my Health Care FSA (HCFSA) at the end of the year?

This depends on which type of Health Care FSA depends your employer has. There are three options:

  1. Health Care FSA with Rollover: You can roll over a portion of unused funds into the next plan year.
    • Most plans with rollovers also include a brief "run out" period prior to the rollover action, varying from 30 to 90 days depending on your employer's plan. During this time your full balance will be available to submit any outstanding expenses from the plan year for reimbursement, but newly incurred expenses are not eligible here.
    • In order to receive your rollover funds, you must enroll in an HCFSA in the new plan year. If you do not enroll in the new plan year, your funds from the previous year will be forfeited at the end of your run-out period (if applicable).
  2. Health Care FSA with Grace Period: You will have 2.5 months after your plan year ends to spend whatever is left in your account on both expenses from the plan year, and eligible new expenses incurred during this timeframe. At the end of the Grace Period, unused funds will be forfeited and do not roll over into the next plan year.
  3. Standard Health Care FSA: You will lose any money left unspent at the end of your plan year. 

If you are unsure as to what your employer offers, please consult any plan documentation offered by your employer.

Questions? We are happy to help! Please reach out to Benepass Support for any assistance.

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