I've gone as far as I can get. I've reached a stalemate. I am attaching the build script with the progressive t-sql. The primary goal I have is to calculate a member's reward point balances. Points accrued in 2012 expire in 2013. Points accrued in 2013 expire in 2014. Any redemptions are subtracted first from last year's carry over, then the rest from the current year. If you see a better way to do things in the script, please add it to your advice/solution/direction.
The pic is the desired result set.