A. No, you must use the money for eligible expenses in the same calendar year as it is contributed. It is not taxed. However, any money left in a pre-tax account at the end of the calendar year is forfeited, per IRS regulations. Careful planning on the amount you contribute is essential. The IRS dictates that the money can not be returned to the individual.
Some institutions use the money to cover a portion of their administrative costs.
We will announce our policy at Open Enrollment, when the pre-tax accounts become available. You will only be reimbursed in a calendar year for up to the amount you selected during Open Enrollment. There is a worksheet in the New Opportunities brochure. A more detailed worksheet will be available at Open Enrollment.