For new FSA members, there are two carryover fund options to take note of: Healthcare to Healthcare and Healthcare to Limited Purpose. Here they are followed:
Healthcare FSA to Healthcare FSA carryover
As of December 31, any funds up to $570 remaining in a Healthcare FSA will immediately carryover on the first day of the new plan year. This means that the carryover amount is simultaneously available to pay previous plan year expenses and current plan year expenses during the previous plan year run-out period.
Healthcare FSA to Limited Purpose FSA carryover
Remaining carryover funds in a Healthcare FSA as of December 31 can only be used for previous plan year dates of service until the end of the plan run-out period. Any dental or vision expenses incurred during the new plan year can be reimbursed either immediately from the new Limited Purpose FSA, or at the end of the run-out period when any remaining funds from the previous Healthcare FSA are carried over to the Limited Purpose FSA.
