TRUE or FALSE: At year end, FSA account balances automatically rollover to the next year.

TRUE or FALSE: At year end, FSA account balances automatically rollover to the next year.

• A. TRUE
• B. FALSE
• C. Partially TRUE
• D. Depends on the company

Answer: (B)

The statement is false because FSA (Flexible Spending Account) balances do not automatically roll over to the next year in most cases. Typically, FSAs are structured to allow employees to use their contributions for qualified expenses within the plan year, and any unspent balance at the end of that year is usually forfeited. This is often referred to as the "use-it-or-lose-it" rule. Some employers may offer a grace period or allow a limited carryover amount into the next year, but these provisions are not universal across all plans. Therefore, it is important for employees to understand their specific FSA plan details to avoid losing any unused funds.

The statement is false because FSA (Flexible Spending Account) balances do not automatically roll over to the next year in most cases. Typically, FSAs are structured to allow employees to use their contributions for qualified expenses within the plan year, and any unspent balance at the end of that year is usually forfeited. This is often referred to as the "use-it-or-lose-it" rule.

Some employers may offer a grace period or allow a limited carryover amount into the next year, but these provisions are not universal across all plans. Therefore, it is important for employees to understand their specific FSA plan details to avoid losing any unused funds.