You Must Enroll Each Year to Participate
Because FSAs can give you a significant tax advantage, they must be administered according to specific IRS rules:
Health Care FSA
Unused funds of up to $500 from one year can carry over to the following year. Carryover funds will not count against or offset the amount that you can contribute annually. Unused funds over $500 will NOT be returned to you or carried over to the following year.
Dependent Care FSA
Unused funds will NOT be returned to you or carried over to the following year.