The 'Use-it-or-Lose-it' Checklist
Don't let your hard-earned dollars expire. Learn the deadlines and grace periods for your account.
The dreaded "use-it-or-lose-it" rule causes millions of Americans to forfeit unspent FSA dollars each year. But with proper planning, you can ensure every dollar you contribute works for you.
Understanding FSA Deadlines
Unlike HSAs, which roll over indefinitely, FSAs have strict spending deadlines. The exact rules depend on your employer's plan design.
- Grace Period: Up to 2.5 extra months to spend remaining funds
- Carryover: Roll over up to $680 (2026) into the next plan year
- Neither: Funds expire on the last day of the plan year
Important: Employers can only offer a grace period OR carryover, not both. Check your plan documents to know which applies to you.
Key Dates to Know
- December 31: Most common FSA plan year end date
- March 15: End of grace period (if your plan has one)
- October-November: Open enrollment period for next year
- Year-end: Review your remaining balance and plan spending
Smart Year-End Spending Ideas
If you have funds remaining, don't panic. There are plenty of legitimate ways to use your FSA dollars wisely.
- Stock up on OTC medications (pain relievers, allergy medicine, first aid)
- Schedule vision exams and buy new glasses or contacts
- Get dental work done (cleanings, fillings, X-rays)
- Purchase medical equipment you've been putting off
- Buy sunscreen (now OTC-eligible without prescription)
HSAs: A Different Story
If you have an HSA instead of an FSA, you're in luck. HSA funds never expire and roll over year after year. In fact, many financial advisors recommend treating your HSA as a long-term investment account rather than a spending account.
Pro Tip: If you can afford to pay medical expenses out-of-pocket, let your HSA grow tax-free. You can reimburse yourself years later for any qualified expense you incurred after opening the account.
Your Year-End Checklist
- Check your current FSA balance (log into your benefits portal)
- Verify your plan's deadline type (grace period vs. carryover vs. neither)
- Review upcoming medical needs and schedule appointments
- Stock up on eligible OTC items you regularly use
- Submit all pending reimbursement claims with documentation
- Plan next year's contribution based on this year's spending
Need to spend down your FSA before the deadline?
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