Navigate Up
Sign In Section Home Port Home Contact Us
 

FSA Carryover FAQ

The U.S. Treasury Department permits a maximum of $500 of your unused Healthcare FSA balance remaining at the end of a plan year to be carried over to the next plan year, provided you are still an employee on January 1. At the end of 2018, your account must have a minimum $45 balance for funds to carry over to your 2019 FSA account.

The Port's healthcare FSA plan limits your risk of losing any unused funds and gives you more control and flexibility in managing your out-of-pocket Healthcare expenses. You will no longer need to...

  • Try to precisely predict what your Healthcare expenses might be for the year
  • Worry about losing money left unspent in your FSA at the end of the plan year
  • Rush to spend the remaining balance in your FSA at the end of the plan year or grace period

Answers to Frequently Asked Questions:

Is the carryover option for Healthcare FSAs only, Dependent Care FSAs only, or both?
The carryover option is for Healthcare FSAs only and is not available for Dependent Care FSAs.
Do I have to elect a Healthcare FSA for the new plan year in order to receive the carryover funds
No, but you must be a Port employee on January 1 of the new plan year.
If I elect a Healthcare FSA for the coming year, will my carryover balance be deposited into a Limited Purpose FSA or a General Purpose FSA?
If you elect a Healthcare FSA and a Health Savings Account because you are enrolled in the Aetna HDHP, your carryover balance will be defaulted into a Limited Purpose FSA.  
 
If you elect a Healthcare FSA and are enrolled in the Kaiser Permanente Core Plan or Aetna Deductible Plan, your carryover balance will be defaulted into a general purpose FSA.
If I DO NOT elect a Healthcare FSA for the coming year, will my carryover balance be deposited into a Limited Purpose FSA or a General Purpose FSA?
If you do not elect a Healthcare FSA and also do not elect a Health Savings Account for the coming year, the carryover balance will be defaulted into the same account type you on December 31 of this year, i.e., a Limited Purpose FSA or General Purpose FSA.  You can ask the Port of Seattle Total Rewards Team in HR to change your enrollment from a Limited Purpose FSA to a General Purpose FSA if needed.

If you do not elect a Healthcare FSA and do elect a Healthcare Savings Account for the coming year, the carryover balance will be defaulted into a Limited Purpose FSA.
Which account will be used first during the run-out period: the new plan year account or the carryover amount from the previous year?
The 2018 plan year will pay first and the 2017 (carryover) plan will pay second. You get the best use of your funds by having the current plan year pay first, and the previous plan year pay second.
When are carryover funds available for me to use?
The carryover amount is available to you on January 1 of the new plan year.
Is there a timeframe every year for my carryover funds to be used?
No. The carryover funds can be used at any time for expenses incurred in the new plan year (in addition to the elected payroll deductions). If any funds remain at the end of the 2018 plan year after the run-out period, a minimum of $45 to a maximum of $500 is carried over into 2019, provided you are an active participant on the last day of the plan year and first day of the following plan year.
How long can funds be carried over? Are multiple year carryovers permissible?
Funds may be carried over indefinitely. There is no time limit. However, you must be an active participant on the last day of the plan year and first day of the following plan year in order to have funds carried over to the next plan year.
Does the carryover amount count against the $2,650 maximum contribution limit applicable to each plan year?
No. You can still choose to contribute as much as $2,650 even if you carry over $500 from the previous plan year.
If I have a Healthcare FSA balance and separate from employment before I have used my funds, is that money then forfeited? Or will I still have a run-out period to submit receipts for treatment date of service prior to termination?
If year-to-date contributions exceed claims and there is a remaining balance, you will have a COBRA election available for the remainder of the plan year that will enable you to submit expenses for services provided in the current year through the run-out period that ends on March 31 of the following year.  If you do not elect COBRA, expenses incurred through the last day of the month in which your last paid day occurred may be submitted through March 31 of the following year.
 
Funds remaining in your account after the run-out period would be forfeited. You must be an active participant on the last day of the plan year and first day of the following plan year in order to have funds carried over to the next plan year.