What happens to your funds depends on the “end type” of your company’s LPFSA plan. Regardless of your plan’s end type, you’ll have a 90-day runout period after your LPFSA ends, which allows you to submit claims for any expenses you incurred during your LPFSA plan period.
What happens to your funds depends on the “end type” of your company’s LPFSA plan:
- Up to a $610 Rollover (For plan years starting on January 1, 2023 or later): If your company offers an LPFSA again next year, you’ll be able to carry over up to $610 of unused funds from your current LPFSA. Note that this rollover is limited only to Health Care FSAs (Limited/Full Purpose). The employer is able to designate any amount up to $610 to be rolled over.
- Grace Period: You’ll be able to use any rollover funds left in your LPFSA for two and a half months after it ends.
- Use-or-Lose: You’ll lose any funds left in your LPFSA after your current plan ends.
Regardless of your plan’s end type, you’ll have a 90-day runout period after your LPFSA ends, which allows you to submit claims for any expenses you incurred during your LPFSA plan period.