Your pre-tax Forma card should only be used for purchases made in the current year. If an expense was incurred last year, you must submit a reimbursement claim to avoid a declined transaction or current year funds being used for an expense in the past. Forma is unable to adjust the card transaction if current year funds were used for an expense made last year. The funds pulled are permanent.
See below for the different scenarios:
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 2023 and paid for it in 2024, the 2024 funds will be used. If you would like to use funds carried over from 2023 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 2023 FSA with a grace period ending March 15th 2024, you can swipe your card for a March 1st 2024 expense, but 2024 funds will be used. If you would like to use your grace period funds from 2023 to cover this expense, a reimbursement claim must be submitted.
Scenario 3 - Run-out Period
3A
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 2023 FSA balance of $50 with a run-out period until March 30th 2024, and you swipe if for a 2024 expense, your card will be declined. The card cannot be used for expenses incurred in 2024 because 2023 funds cannot be applied to a 2024 expense. To take advantage of the remaining $50, you can submit a reimbursement claim for expenses incurred in 2023.
3B
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 2023 FSA balance of $50 with a run-out period until March 30th 2024, and you swipe your pre-tax card in 2024, then 2024 funds will be used. Even if a balance remains from 2023, 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 2023.
Please contact Forma Support at support@joinforma.com or via live chat if you have any questions.