FSA Deadline 2026: What Happens If You Don't Use It

When is the FSA deadline?

Most FSA plans end on December 31st. However, your employer may offer one of two grace period options:

• Grace period: You have until March 15th of the following year to spend your prior year's FSA funds
• Rollover: You can roll over up to $640 (2026 limit) into the next plan year
• Neither: Hard deadline of December 31st — everything not spent is forfeited

Check your plan documents or ask HR which option your employer offers. Don't assume — the difference between a grace period and no grace period is thousands of dollars.

How much do people forfeit?

Americans forfeit over $3 billion in FSA funds every year according to Employee Benefit Research Institute estimates. The average forfeited amount per account is around $339 — but accounts with larger balances can lose much more. This money goes back to employers, who can use it to offset plan administrative costs.

Fast ways to spend down your FSA balance

If you're approaching the deadline with a balance remaining, here's how to use it quickly on legitimate eligible expenses:

• Schedule overdue appointments: Eye exam, dentist, dermatologist, physical — anything you've been putting off
• Order prescription glasses or contacts: Including a backup pair
• Stock up on OTC medications: Pain relievers, allergy medicine, cold/flu supplies, antacids
• Buy eligible health products: Sunscreen, first aid kit, thermometer, blood pressure monitor
• Menstrual care products: Fully eligible, no prescription needed
• Dental work: If you've been delaying a procedure, now is the time

FSA vs HSA: the key deadline difference

HSA funds never expire. They roll over year after year and can be invested for growth. FSA funds follow use-it-or-lose-it rules (with possible grace periods). This is the fundamental difference between the two accounts — HSAs are long-term savings vehicles, FSAs are annual spending accounts.