7

My employer offers a Vision & Dental FSA that I have contributed money to. However I would like to stop contributing to it. Up to a certain amount of money ($570) in the FSA rolls over to the next year. I have less than that in the FSA, but I don't know that I will spend it all this year or next. If I stop contributing to the FSA, will that money continue rolling over year to year? Or will they close my account when I fail to sign up for new contributions during open enrollment.

4
  • 2
    I’d ask the benefits provider.
    – RonJohn
    Aug 3, 2023 at 1:07
  • I presume you don't mean the common Flexible Spending Account, since that never rolls over. I seem to remember that there's another thing called an FSA, but I'm not remembering details offhand. There may be an existing Answer that discusses the common kinds of health benefit accounts (FSA, HSA, etc) and how each one works; they're significantly different beasts. If there isn't, I could attempt a summary; my ex-employer shuffled retiree health plans last year and we had to learn more about this than we wanted to.
    – keshlam
    Aug 3, 2023 at 1:16
  • 2
    @keshlam FSA balances most definitely roll over, up to a limit allowed by the IRS. It's a (relatively) new change in the last several years.
    – littleadv
    Aug 3, 2023 at 2:05
  • Ah. Hadn't heard about that change; I sit corrected.
    – keshlam
    Aug 3, 2023 at 3:22

1 Answer 1

8

The carryover provision is not mandatory, some, not all companies, have adopted it. If your company have the carryover, there is a hard deadline, in the IRS rules, that it must be used by March 15th of the year following. Note: there were other, more generous deadlines in the prior two years due to Covid, this answer is what is in effect as of the end of 2022.

1
  • Thanks. I think the March 15 deadline was never clear to me and now that I think about it I think I have already lost money because of this. I should just stop using an FSA I think, it is too easy for me to accidentally not spend it in time.
    – ORcoder
    Aug 7, 2023 at 21:02

You must log in to answer this question.

Not the answer you're looking for? Browse other questions tagged .