How to Spend Your FSA Money Before It Expires

What is a FSA?

A flexible spending account (FSA) is a special account that allows you to set aside pre-tax money from your paycheck to pay for eligible healthcare expenses. This can save you money since the contributions lower your taxable income. However, FSAs come with a “use it or lose it” rule, meaning if you don’t use the money by the end of the plan year, you forfeit any remaining balance.

How much FSA money will I lose if I don’t spend it?

The amount of FSA funds you may lose can vary based on your employer’s plan rules. Typically, you must incur eligible healthcare expenses by December 31st and file claims by a certain date in the following year. Any unspent funds after that date are forfeited, which could be hundreds or even over $1000 depending on your annual election amount.

When does my FSA balance expire?

FSA balances typically expire at the end of the plan year or grace period if offered. Most employer plans follow the calendar year, so funds would expire after December 31st. However, some companies offer grace periods extending the deadline typically by 2 1/2 months. Check with your employer to find your exact FSA expiration date.

How can I check my current FSA balance?

You can check your current FSA balance in a few ways:

Through your health insurance provider’s online member portal
On your FSA provider’s website or mobile app
By calling your FSA administrator’s customer service line

Knowing how much money is left makes it easier to budget the amount for necessary healthcare expenses.

Frequently Asked Questions

What purchases qualify for FSA spending?

Eligible FSA expenses include doctor visit copays, prescription medications, dental work, vision care like glasses and contacts, medical devices, and more. Review your plan details for a full list of qualifying purchases.

What’s the best way to use my FSA funds?

Set reminders to check your balance quarterly, review eligible expenses that you may need soon, and consider paying some recurring healthcare bills early like dental cleanings or new glasses. Planning ahead helps maximize your savings.

What if I still have money left at the end?

If you find yourself with leftover FSA dollars as your expiration date nears, you can stock up on eligible healthcare items you may need soon like contact lenses, sunscreen (SPF 30+), menstrual care products, lactation supplies, and eligible over-the-counter medications.

Can I get an extension on spending my FSA money?

Unfortunately, extensions are not allowed on FSA spending deadlines in most cases. Carefully review your plan details to check for a grace period allowance which provides extra time.

What happens to unspent FSA contributions?

Any FSA money left unspent after your expiration deadline becomes forfeited per IRS regulations. Those forfeited funds go back to your employer. So be sure to spend any leftover balance if possible.