FSA money expires at the end of your plan year, not at the end of the calendar year
Your Flexible Spending Account (FSA) funds do not roll over to the next year. The money you set aside expires on a specific date set by your employer's plan — usually December 31st, but sometimes later depending on when your employer's plan year ends. If you do not spend the money by that date, you lose it. This is called the "use-it-or-lose-it" rule, and it is a hard important date.
The expiration date matters because it is different from the calendar year. Some employers run their FSA plan year from January to December, but others run it from July to June, or September to August, or any other 12-month period. You need to know your own plan year to know when your money actually expires. Your employer's benefits office or your FSA plan documents will tell you the exact end date.
Once the important date passes, any unspent balance is forfeited to your employer or the plan administrator. There is no way to recover it, no grace period, and no exceptions. This is why tracking your spending and your balance throughout the year matters.
Key Takeaways
- FSA funds expire on the last day of your employer's plan year, which may not be December 31st — check your plan documents or benefits office for your actual date.
- Any money left unspent on the expiration date is lost permanently; there is no carryover to the next year except in rare cases where your employer offers a grace period.
- Some employers allow a grace period of up to 2.5 months after the plan year ends, during which you can still spend down your remaining balance.
- You can change your FSA contribution amount or stop contributing during open enrollment or if you have a may have access to life event, but you cannot get a refund of money already set aside.
The grace period: a second chance if your employer offers it
Some employers offer a grace period — an extra window of time after the plan year ends during which you can still spend your remaining FSA balance. If your employer offers this, it is usually 2.5 months long. For example, if your plan year ends on December 31st and your employer offers a grace period, you might have until March 15th of the following year to spend the money.
Not all employers offer a grace period, and the length varies. You need to check your plan documents or ask your benefits office whether yours does. If it does, the grace period date is just as firm as the original expiration date — money left unspent after the grace period ends is still forfeited.
A grace period is different from a carryover. A carryover would let you move unused money into the next plan year. FSAs do not allow carryovers under federal rules, with one small exception: some employers offer a limited carryover of up to $610 (this amount changes yearly) into the next plan year. This is rare and only available if your employer's plan specifically includes it. Ask your benefits office if your plan allows carryover.
How to find your FSA expiration date
Your expiration date is in your plan documents, which your employer should have given you when you enrolled. Look for a section titled "Plan Year" or "Benefit Year." It will show the start date and end date of your coverage period.
If you cannot find your documents, contact your employer's benefits office or human resources department directly. You can also check your FSA provider's website or app — most providers show your plan year dates in your account dashboard. If you enrolled through a benefits platform like Benefitfocus or ADP, log in and look for plan year information there.
Write down both your plan year end date and any grace period end date if your employer offers one. Set a reminder on your phone or calendar for two months before the expiration date so you have time to plan your spending.
Spending down your balance before it expires
Once you know your expiration date, you can plan what to spend your remaining balance on. FSA money can only be used for may have access to medical expenses — things like copays, deductibles, prescription medications, dental work, vision care, and certain over-the-counter items. You cannot use it for gym memberships, cosmetic procedures, or general wellness products.
If you have a significant balance left and the expiration date is approaching, consider scheduling dental or vision appointments, buying prescription glasses or contacts, or stocking up on may be able to access over-the-counter items like pain relievers or allergy medications. Keep your receipts — you will need them to prove the expenses were may have access to when you submit them to your FSA plan.
Some FSA providers offer a debit card that you can use at pharmacies and medical providers, which makes spending easier. Others require you to pay out of pocket and then submit receipts for reimbursement. Check how your plan works so you know what to expect.
What happens if you do not spend all your money
If your balance reaches zero before the expiration date, that is fine — you straightforward have no more FSA funds to use until the next plan year begins. If you have money left when the expiration date arrives, it is forfeited. Your employer or plan administrator keeps it; you do not get a refund, and you cannot carry it forward.
This is why many people try to estimate their medical expenses carefully when they choose their FSA contribution amount during open enrollment. If you consistently have money left over, you might lower your contribution for the next year. If you always run out, you might increase it. You can only change your contribution during open enrollment or if you have a may have access to life event like a marriage, birth, or loss of other health coverage.
Expiration dates when you leave your job
If you leave your job before your plan year ends, your FSA coverage usually ends on your last day of employment. Any remaining balance is forfeited, even if your employer's plan year has not ended yet. This is true whether you resign, are laid off, or retire.
Some employers allow you to continue using your FSA for a limited time after you leave through a program called COBRA, but you have to pay the full premium yourself, and the coverage still ends on your original plan year end date. Check with your employer's benefits office about whether COBRA is available and whether it makes sense for your situation.
If you are planning to leave a job, try to spend down your FSA balance before your last day. Any unspent money will be lost.
Frequently Asked Questions
Can I get my FSA money back if I do not spend it?
No. Once the expiration date passes, any unspent balance is forfeited permanently. There is no refund, no exception, and no way to recover it. This is why it is important to track your balance and plan your spending as the important date approaches.
What if my employer offers a grace period but I still have money left?
The grace period is an extra window to spend, but it is not a carryover. Money left unspent after the grace period ends is also forfeited. The grace period end date is just as firm as the original expiration date.
Can I change my FSA contribution if I realize I will not spend all my money?
You can only change your contribution during open enrollment (usually in the fall for the next plan year) or if you have a may have access to life event like a marriage, birth, or loss of other health coverage. You cannot change it mid-year just because you have too much money left.
Do I lose my FSA money if I switch jobs?
Yes. Your FSA coverage ends on your last day of employment, and any remaining balance is forfeited. You cannot transfer FSA funds to a new employer's plan. Try to spend down your balance before you leave.
What counts as a may have access to medical expense I can spend my FSA on?
may have access to expenses include copays, deductibles, prescription medications, dental work, vision care, hearing aids, and some over-the-counter items like pain relievers and allergy medications. Gym memberships, cosmetic procedures, and general wellness products do not count. Your FSA provider can give you a full list.