If you do not claim your full QSEHRA allowance in a given month, the unused amount rolls over and accumulates until the end of the calendar year, when it resets.
What happens if I don’t use my full QSEHRA allowance each month?
Any unused monthly QSEHRA allowance does not disappear immediately.
Instead:
It rolls over month to month
It accumulates into a running balance
It can be used later in the same plan year for eligible expenses
Note: Whether unused funds roll over within the plan year depends on your employer's plan design. Some plans allow monthly allowances to accumulate, while others do not.
However, QSEHRA is not a savings account, so you only receive reimbursement when you submit eligible expenses.
How does monthly rollover work?
Each month, your employer allocates a set reimbursement allowance. If you don’t use all of it:
Your unused allowance carries into the next month
Your available reimbursement balance grows over time
You can use that accumulated balance for future eligible expenses
Example:
Monthly allowance: $300
Month 1 used: $150 → $150 rolls over
Month 2 unused: $300 → total available becomes $750
Can I use unused QSEHRA funds later in the year?
Yes. You can submit reimbursement claims later in the year for:
Prior month premiums
Out-of-pocket medical expenses
Eligible expenses incurred during the plan year
As long as the expense is eligible and incurred while you were enrolled, you can apply your accumulated balance toward it.
What happens to unused QSEHRA funds at the end of the year?
At the end of the calendar year:
Any unused allowance generally resets to $0
The accumulated balance is no longer available in the new year
You may have a limited run-out period to submit prior-year claims (if your employer allows it)
Generally, unused QSEHRA funds must be claimed by March 31 of the following year for expenses incurred in the previous year.
Important: Unused funds do not automatically carry into the next year unless your employer’s plan specifically allows it.
What happens to unused QSEHRA funds if the plan is terminated?
When a QSEHRA plan is terminated, unused allowances can only be applied to eligible expenses incurred before the termination date. Employees must submit claims by the plan’s defined deadline (e.g., 60–90 days after termination). Any remaining unused funds are forfeited and cannot be cashed out or converted to other accounts like HSAs or FSAs.
What happens to unused QSEHRA funds during plan transitions?
Unused QSEHRA balances do not roll over when transitioning to an ICHRA (Individual Coverage Health Reimbursement Arrangement). Employees should plan accordingly as unused funds will be forfeited. Even if rollover is allowed, the carried-over amount cannot exceed the IRS annual limit for the new year.