What might happen if an individual exceeds their flexible spending account limit?

When an individual exceeds their flexible spending account (FSA) limit, the primary consequence is that they cannot claim expenses beyond that limit. FSAs are designed with specific contribution limits set by the IRS, and any amount spent over that limit will not be reimbursed. This means it is essential for participants to plan their contributions carefully based on anticipated medical expenses, as any excess claims will simply be ineligible.

Additionally, while some other options suggest potential outcomes such as rolling over excess funds or facing penalties, these scenarios do not accurately reflect the functioning of FSAs in relation to exceeding the claim limit. In essence, the primary restriction with an FSA is tied to the actual amount that can be claimed, and exceeding that limit means that those additional expenses will not be reimbursed at all.