Open enrollment 2021: You may be able to carry over unused FSA funds of up to $550

Jessica Menton, USA TODAY
·2 min read

Open enrollment season is here, which means some of you are running out of time to use your tax-advantaged funds before year-end. If you have a flexible spending account, remember that some plans may allow you to carry over slightly more in unused funds for next year.

An FSA allows you to pay for many out-of-pocket, qualified medical expenses with pretax dollars. This allows you to set aside money that can be used to cover co-pays, deductibles, prescription drugs and other medical costs.

Typically, funds must be used by year-end, unless an employer offers a “carryover,” which allows employees to roll over $500 of unused funds to the following year. Or a company may offer a grace period that would extend the use of the funds until March 15 of the following year.

An employer may allow either a carryover or a grace period for an FSA, but not both.

COVID-19 relief: From extended jobless benefits to student loan reprieve, relief set to fade at year's end

Economy: COVID-19 vaccine prospects may already be boosting consumer spending

But in the wake of the COVID-19 pandemic, the IRS made changes to FSA rules this year since some Americans were forced to put off medical expenses during shutdowns.

$50 bump in FSA carryover

For plans that permit the carryover of unused amounts, the maximum amount for 2021 is $550, an increase of $50 from the 2020 carryover limit. The dollar limit for employee contributions to FSAs remains unchanged at $2,750.

To be sure, some FSA plans can be “use-it-or-lose-it,” which means you have to incur eligible expenses by the end of the plan year or forfeit any unspent amounts. Employers may allow you to carry over up to $550 of unused FSA funds to the following plan year. It is up to your employer, so check with your Human Resources department.

This article originally appeared on USA TODAY: Open enrollment 2021: FSA funds of up to $550 could be carried over

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Harvey Weinstein's 2020 rape conviction overturned

    The New York Court of Appeals has ruled that the judge who presided over Weinstein's trial prejudiced him by allowing three women to testify about their alleged encounters with the producer when their accusations did not form the basis of the case. At the time, those women were called as witnesses because state law allowed testimony about "prior bad acts" to prove a pattern of behaviour. "Under our system of justice, the accused has a right to be held to account only for the crime charged.", Judge Jenny Rivera, Associated Press.

  • Japan announces plans to launch upgraded observation satellites on new flagship rocket's 3rd flight

    Japan’s space agency announced Friday a plan to launch a major upgrade to its satellite imaging system, as a new flagship rocket is put to the test for a third time. The Japan Aerospace Exploration Agency that an H3 rocket will be launched from the Tanegashima Space Center, on a southwestern Japanese island, early afternoon on June 30, with a launch window that runs through the end of July. The rocket will be carrying an Advanced Land Observation Satellite, ALOS-4, tasked primarily with Earth observation and data collection for disaster response and mapmaking, as well as with monitoring military activity, such as missile launches, with an infrared sensor developed by the Defense Ministry.

  • Trending tickers: Alphabet, Intel, Microsoft, Amazon and Anglo American

    The latest investor updates on stocks that are trending on Friday.

  • Your expert guide to melanomas and how to spot them

    If you have noticed a lingering spot somewhere on your skin, it would be wise not to dismiss it, especially if there’s something unusual about its appearance. Over the past three decades, rates of melanoma skin cancer have more than doubled in the UK, a trend that looks set to continue.

  • 3:35 a.m. Friday Update: Storms continue to move across Oklahoma

    3:35 a.m. Friday Update: Storms continue to move across Oklahoma

  • Two men charged in Channel deaths investigation

    Five migrants, including a child, were killed in a crush on board a boat crossing the Channel.

  • World's first skin cancer drug being tested in UK patients

    The world's first personalised mRNA cancer jab for melanoma is being tested on British patients. Steve Young, 52, from Stevenage, joined a clinical trial after being diagnosed with the potentially deadly form of skin cancer. Dr Heather Shaw, an investigator for the trial, said the jab had the potential to cure people with melanoma and is being tested in other cancers. “This is one of the most exciting things we’ve seen in a really long time," she said. .

  • Lifeboat found floating in sea has been transformed into glamping Yellow Submarine

    A lifeboat found floating in the sea after being stolen by pirates has been turned into a 'Yellow Submarine' for glamping. Andy Barton, 58, transformed the discarded vessel into camp-site accommodation. It has a fully-equipped kitchen featuring a fridge, hob, sink, double-bed, single bunk-bed, a dining area with a sofa and an outdoor BBQ and firepit. The sub was originally used on a big tanker ship named 'Northsea Pioneer' until it was attacked by Somali Pirates off the East African coast in 2019. The escaping pirates stole the vessel and years year the lifeboat was discovered drifting between the UK and northern Spain. Some friends of Andy's found the lifeboat off the coast of Portsmouth - and they held onto it until Andy decided to turn it into a fake submarine.

  • Reading terror attack families ‘trusting’ inquest judge to provide answers

    Libyan refugee Khairi Saadallah fatally stabbed James Furlong, 36, Dr David Wails, 49, and Joseph Ritchie-Bennett, 39, in June 2020.

  • Haas confirm Nico Hulkenberg exit ahead of Audi switch

    The German driver joined Haas last year but will leave the American-owned team at the end of the season

  • Anne Hathaway Has Good And Bad News About Sequels To 2 Of Her Most Iconic Films

    "We're in a good place..."

  • 'Daily Show' Bit Lays Bare A Damning Contradiction Of Donald Trump

    The former president's dueling narratives are exposed by Jordan Klepper, Ronny Chieng and Michael Kosta.

  • China warns relations with US could slip into ‘downward spiral’ if red lines crossed

    Wang Yi tells Antony Blinken ‘disruptions’ could arise amid threat of sanctions over China’s support of Russia’s defence industry

  • FTSE 100 Live 26 April: Anglo American rejects BHP, blue-chips hit another new record, $5bn Darktrace deal

    Darktrace’s three year stay on the London stock market is set to end after the cybersecurity firm backed a £4 billion takeover by a US private equity firm. The developments came as mining giant Anglo American said it had rejected BHP’s “opportunistic” £31 billion bid approach.

  • India begins second phase of national elections with PM Modi's BJP as front-runner

    Millions of Indians began voting on Friday in the second round of multi-phase national elections as Prime Minister Narendra Modi sought to galvanize voters with his assertive brand of Hindu nationalist politics. The outcome of Friday’s voting will be crucial for Modi’s Hindu nationalist Bharatiya Janata Party, as the 88 constituencies up for grabs across 13 states include some of its strongholds in states like Rajasthan, Madhya Pradesh, Uttar Pradesh and Maharashtra. (AP video Piyush Nagpal/Shonal Ganguly)

  • New £152million fraud website will stop victims being conned, says City of London Police chief

    Criminals target Taylor Swift fans looking to buy tickets for her sold-out summer concerts in Wembley

  • NFL Draft Round 1 Recap: 5 biggest fantasy storylines & instant draft grades

    Matt Harmon and Charles McDonald breakdown the five biggest fantasy storylines from night one of the draft and provide instant draft grades and dynasty rookie rankings.

  • Brazil Indigenous people rally for land protection

    STORY: Thousands of Indigenous protestors in Brazil marched around the national congress on Thursday, calling on the government to protect their ancestral lands.It's part of a yearly protest this week -- in defense of Indigenous land rights.They are upset with the government for planning a railway to transport grain from farm states to ports in the Amazon for export as they fear doing so will destroy the environment of tribal communities near the Tapajos river.Mana Shanenawa is an Indigenous leader taking part."In the past, we died by the knife, by the bullet and today we die by the pen -by making laws and by taking away our rights. This is a huge genocide that can happen within our nation, within the people, because our indigenous land is life. For us, it is forest and life."The protestors accuse Brazilian President Luiz Inacio Lula da Silva's government of not keeping to promises to officially recognize Indigenous reservations as ancestral lands. They say the recognition is essential to protect their territories from illegal loggers, wildcat gold miners and land grabbers encroaching on the expanding agricultural frontier in the Amazon.President Lula, who met with 40 Indigenous leaders who led the march, said on X that, quote:"It is my moral duty to do what I can to minimize the suffering of Indigenous people and guarantee their rights." But the leaders came away with little more than promises.Lula's minority government is undecided on whether to approve the railway project, which has strong backing from Brazil's powerful agricultural sector.However, the farm caucus in Congress is pressing for the building of the 590-mile-long railway, first proposed in 2015 before Lula was in office.In a statement to Reuters, the caucus said the project is of extreme importance for the shipment of grains.They claim it will cut freight costs by 25% and release less carbon dioxide into the atmosphere than the trucks that are currently used.

  • Two charged after deaths of five migrants in English Channel

    Two men, both aged 22, are charged with immigration offences

  • These Stocks Are Moving the Most Today

    Alphabet shares surge after Google’s parent posts better-than-expected earnings and announces its first cash dividend, Microsoft posts 31% quarterly growth in Azure cloud-computing revenue, and Snap soars after issuing a strong forecast for second-quarter sales.