Rollover Funds on FSA Plan and Run-Out Period Explained

Written by Aimee Reynard
Updated 1 year ago

Rollover: The rollover allows employees to carry unused FSA funds forward to the new plan year. 

Please note that the employer currently dictates how much can be rolled over per plan year. This does not affect the maximum election amount allowed by the IRS, and an employee can elect the full amount and still have unused dollars rolled over with no penalty. 

Run-Out Period: The run-out period is typically a 90-day window following the end of a plan year. Employees may submit manual claims for any expenses incurred within the plan year that has just ended in order for prior-year claims to be reimbursed with any funds remaining in that plan year. The run-out period is standard and will be in place regardless of any other options chosen.

The rollover funds are then set at a lower priority than the new year funds for the course of the run out so an employee does spend all of their dollars if their intention is to submit prior year claims also. 

Once the run out period is over for the prior plan year, Ameriflex will move the ROL/RO2 funds into the new year account. This will happen automatically after the run out period, and can be found in the "Other Deposits" column on monthly reporting.

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