A health flexible spending account lets you set aside pre-tax money, but by default whatever is unspent when the plan year ends is forfeited. Whether you can keep any of it depends on your employer's plan.
FSA use it or lose it deadline 2026
For most people the plan year is the calendar year, so the deadline is December 31. Some plans end mid-year. Your plan document or FSA administrator has the exact date.
FSA carryover limit 2026
Under IRS Revenue Procedure 2025-32, a plan may allow up to $680 of unused health FSA money to carry over from a plan year beginning in 2026. Employers can choose a lower amount or no carryover at all. The 2026 contribution limit is $3,400.
FSA grace period vs carryover
A grace period gives you up to two and a half months after the plan year ends, until March 15 for a calendar-year plan, to use the old balance. A plan can offer a carryover or a grace period, but not both, so check which one yours has.
How much of my FSA will I lose
An Employee Benefit Research Institute analysis of 3.2 million FSAs found roughly half of account holders forfeited money to their employer in 2022, at an average of $441. Later EBRI figures for 2023 showed 47% forfeiting about $422. The calculator turns your own balance and plan type into an at-risk amount and a weekly spending pace.
When does my FSA money expire
It expires at the end of your plan year, or after the grace period if your plan has one. Dependent-care FSAs follow different rules, so confirm yours with your administrator.
Sources: IRS Revenue Procedure 2025-32 (health FSA limits for 2026); Employee Benefit Research Institute, analysis of 3.2 million FSAs (May 2024).