Health Flexible Spending Accounts (FSAs) are traditionally use-it-or-lose-it plans. You can save pre-tax dollars to pay for health care expenses, but they must be used within a plan year.  As of 2016, you are allowed to rollover $500 from an FSA into the next plan year. Now there is another change.


If you have an FSA this year and carry over $500 into 2016 you will be ineligible to participate in a Health Savings Account (HSA) in 2016. This only applies to general purpose FSAs, not ones for specific uses like dependent care or dental expenses.


“If you really want to set up an HSA for 2016, it may be best not to carry forward those unused FSA amounts, even if it means that you will lose them.”