If you have an employer-sponsored Flexible Spending Account (FSA), now is a good time to check your balance. FSAs allow you to pay eligible health care expenses with pretax dollars, but they’re generally subject to a “use-it-or-lose-it” rule.
For 2026, the plan may allow you to carry over up to $680 of unused funds to 2027. Alternatively, it may provide a grace period of up to 2½ months after the year ends to incur eligible expenses. For a 2026 calendar-year plan that has a grace period, that period ends March 15, 2027. A plan can’t offer both a carryover and a grace period — only one or neither.
If you have a calendar-year plan and expect to forfeit funds, consider using the funds for eligible expenses before December 31, 2026. Some examples are deductibles and co-payments, dental and vision care (including glasses and contacts), medications and certain medical supplies.
