How Unused ICHRA Allowances Work

Learn how unused allowance amounts are handled when your ICHRA includes a carryover feature.

Sep 7, 2026

Lirvion supports carryover of an employee's unused allowance when carryover is included in the employer's approved ICHRA design.

During allowance configuration, the employer determines whether unused amounts remain available for a later eligible period.

When carryover is enabled, an unused amount:

  • Does not become cash or wages

  • Remains an employer-funded ICHRA allowance

  • May be used only as permitted under the plan while the employee remains eligible

When carryover is not enabled, unused amounts are handled according to the expiration rules established in the plan documents.

Before enrollment begins, confirm:

  • Whether carryover is enabled

  • Which periods it applies to

  • How it interacts with eligibility changes

  • How it applies to terminations

  • How it works when a new plan year begins

Lirvion can help align the platform configuration with the employer's approved plan terms.

Related articles