The MIT Health Care FSA has a carryover time limit to no more than one plan year when a subsequent enrollment is not made. As long as you have an active Healthcare FSA in subsequent plan years, you may carryover funds from one plan year to the next. For more information and for examples of different scenarios that show how the Health Care FSA Carryover feature works, see the Participant Overview Information Sheet (below).
Frequently Asked Questions
- Who is eligible for the Carryover?
Active employees with a Health Care FSA who have unused funds in their account as of December 31 will have their carryover funds carried over into the next plan year automatically. However, if the employee does not re-enroll in a Health Care FSA, the carryover dollars must be used by April 30th following the year in which a Health Care FSA was elected.
- How much can/will be carried over?
Any remaining balance up to $500 will be carried over.
- Does the carryover apply to the Dependent Care FSA?
No, the carryover only applies to the Health Care FSA. It does not apply to the Dependent Care FSA.
- If I do not elect a Health Care FSA for 2018, but I have leftover Health Care FSA funds from 2017, will those funds be carried over into a 2018 FSA?
Yes, for active employees, even if you do not elect a Health Care FSA for 2018, any funds remaining in your account, up to a limit of $500, will be carried over for you to use during 2018.
- I may want to elect to contribute $2,600 (the maximum allowed amount) into the Health Care FSA for the 2018 plan year. If I have funds from my 2017 Health Care FSA to be carried over, won’t my Health Care FSA exceed the $2,600 maximum?
Yes, but it is allowable for your Health Care FSA account to exceed the $2,600 maximum annual deferral as long as no more than $2,600 is deducted from your pay on an annual basis.