Frequently Asked Questions

Can I roll over or cash out the unused funds in my FSA?

You are provided a "run out" period at the end of your plan year (or date of employment termination, whichever occurs first) to submit reimbursement claims for any unclaimed eligible FSA expenses incurred within the plan year. Some employers may structure their FSA plans to give participants an additional 2.5 months at the end of their plan year to incur eligible expenses to help participants “spend down” any remaining funds.

On October 31, 2013, The US Treasury Department announced it was partially modifying the “use-it-or-lose-it” FSA rule to also allow employers to choose between offering the 2.5 month extension, or allowing participants to “roll over” up to $500 of remaining FSA funds to the following plan year. Check with your HR department to find out if you have the roll-over provision or the 2.5 month extension for your medical FSA.