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.
    • At the end of the run out period, any remaining funds under the applicable rollover limit will be made available to you to use for eligible expenses during the current plan year.
  2. Health Care FSA with Grace Period: You will have a set time frame, usually 75 days, 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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