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.
- 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.