FSAs are subject to the “use-it-or-lose-it” rule, which states that any unspent FSA funds at the end of each plan year will be forfeited to one’s employer. However, plans can offer one (or neither) of two options of relief for FSA users: the 2.5 month grace period and $500 rollover. The 2.5 month grace period gives FSA users two and a half months to spend down their remaining funds and file claims after the last day of their plan years. The $500 rollover allows FSA users to move up to $500 into next plan year’s allocation. Speak with your benefits administrator to find out if either of these options are in place, whose information can be found on the back of your FSA card.
Articles in this section
- Can I submit a claim for a service that was performed in 2019 but I paid for in 2020?
- Can you withdraw money from your FSA card?
- Is there a dollar amount that can carry over to next year?
- I would like the contact information of my FSA provider.
- Will you match a price I found on another site?
- Is the data I submit kept secure and private?
- You have lost your FSA card - How to replace it?
- What is stockpiling?
- How do I check my FSA deadline?
- How do I suggest products to the online selection?