Hello,
I had a healthcare FSA for 2020 and some of it will rollover to 2021 (we were allowed a max of $550 rollover).
I learned that I am due a partial refund for an expense I claimed in 2020. The refund will be made by a check, the merchant stated they can't refund it to my FSA card directly.
What can I do with this money? I have learned that there is a "repayment" option to my FSA account. This sounds like it will make things appropriate for tax reasons. The issue is that the repayment will push my 2020 balance above the rollover amount and I will likely lose the excess money.
Is there a proper way around this? This is mostly an issue on the merchant side that they didn't inform me earlier. I could have spent the excess money for something else in 2020.
I saw this post about a similar situation related to an HSA refund. I would be interested in doing something similar to (b) there if that is allowed.
Thanks!
