If I allocate $100 into my Health Care Expense Account, and I incur only $80 of charges for the calendar year, what happens to the $20?
The IRS states that if you do not have expenses that equal or exceed the money you have set aside on a pre-tax basis, you lose the remaining balance in your Flexible Spending Account at the end of the year. This is why we ask you to be cautious with your election. Your employer cannot return forfeited amounts directly to those individuals who lost it.
Related Questions
- If I allocate $100 into my Health Care Expense Account, and I incur only $80 of charges for the calendar year, what happens to the $20?
- Can I use contributions from my Health Care Reimbursement Account to pay for charges incurred by my child or spouse?
- Who is eligible for a Health Care and Limited Expense Health Care Flexible Spending Account?
