Your pre-tax Forma card should only be used for purchases made in the current plan year. If an expense was incurred in the previous year, you must submit a reimbursement claim to prevent a declined transaction or the use of current year funds for past expenses. Please note, Forma cannot adjust card transactions if current year funds are used for expenses from the previous year. Once funds are deducted, they are final.
Scenario 1: General Card Usage
If you purchased a product or service in the previous year and are paying for it in the current year, you will be using the current year’s funds.
For example, if you purchased an item 2024 and paid for it in 2025, the 2025 funds will be used. If you would like to use funds carried over from 2024 to cover this expense, a reimbursement claim must be submitted.
Scenario 2: Grace Period
If you have an FSA account with a grace period, and you use your pre-tax card from the previous plan year, it will draw from the current year’s funds.
For example, if you have a 2024 FSA with a grace period ending March 15th 2025, you can use your card for a March 1st 2025 expense, but 2025 funds will be used. If you would like to use your grace period funds from 2024 to cover this expense, a reimbursement claim must be submitted.
Scenario 3: Run-out Period
3A - You don't have an FSA in the current year
If you have a pre-tax account with a run-out period and you didn’t elect an FSA this year, your pre–tax card cannot be used.
For example, if you have a 2024 FSA balance of $50 with a run-out period until March 30th 2025, and you use your pre-tax card to pay for a 2025 expense, your card will be declined. The card cannot be used for expenses incurred in 2025 because 2024 funds cannot be applied to a 2025 expense. To take advantage of the remaining $50, you can submit a reimbursement claim for expenses incurred in 2024.
3B - You have an FSA in the current year
If you have a pre-tax account with a run-out period and elected an FSA in the new plan year, your pre-tax card can be used but current year funds will be applied.
For example, if you have a 2024 FSA balance of $50 with a run-out period until March 30th 2025, and you use your pre-tax card to pay for a 2024 expense, then 2025 funds will be used. Even if a balance remains from 2024, it will not be applied to your transaction. To take advantage of the remaining $50 you can submit a reimbursement claim for expenses incurred in 2024.
Please contact Forma Support at support@joinforma.com or via live chat if you have any questions.