Q.- We implemented the $500 carryover provision for our calendar year FSA plan. We have an employee who will not have used his full FSA amount by the end of the year. He does not want to make a contribution to the FSA in 2015. Does he forfeit his unused amount, or does it carryover to 2015 even if he does not elect to participate in the FSA in 2015?
A.- Up to $500 of his unused 2014 FSA will carry over into 2015 even if he does not elect an FSA contribution in 2015. An unused carryover amount is carried over from plan year to plan year until the individual terminates employment or becomes ineligible for the FSA.
