Quick Answer: In most cases, unspent FSA money is forfeited at the end of your plan year. Some employers offer a grace period (2.5 extra months) or a carryover (up to $680 in 2026), but not both. Don't let your FSA funds go to waste - plan ahead!
The "Use It or Lose It" Rule
FSAs come with a rule that can be painful if you don't plan: money you don't spend within the plan year can be lost forever. It doesn't carry over automatically like an HSA.
This is the biggest downside of FSAs, and it's why millions of Americans forfeit FSA dollars every year.
Two Possible Safety Nets
Your employer may offer ONE of these (but not both):
Option 1: Grace Period
Extra 2.5 months after the plan year ends to spend remaining funds
If your plan year ends December 31, your grace period runs through March 15
Any money still unspent after the grace period is forfeited
Option 2: Carryover
Up to $680 (2026) of unused funds rolls into the next plan year
You don't need to do anything - the rollover happens automatically
Any amount above $680 is still forfeited
Option 3: Neither
Some employers don't offer a grace period or carryover
In this case, all unspent funds are forfeited at the end of the plan year
How to find out which option you have: Check with your HR department or benefits admin. This is set by your employer, not by the FSA admin.
Key Dates to Watch
Date | Why It Matters |
October–December | Open enrollment - choose your FSA contribution for next year |
December 31 | Most FSA plan years end (check yours!) |
March 15 | Grace period deadline (if your employer offers one) |
Smart Ways to Spend Your FSA Before It Expires
If you have FSA money left near the end of the year, here are ways to use it:
✅ With Crates Health
Gym memberships - Sign up or prepay, then reimburse with your FSA
Fitness trackers - Apple Watch, Oura Ring, WHOOP
Supplements - Stock up on AG1, Thorne, LMNT, probiotics
Recovery tools - Therabody, massage devices
Sleep technology - Eight Sleep, sleep trackers
All require an LMN - Crates makes that easy.
✅ Without an LMN
Prescription medications
Over-the-counter medicines (pain relievers, allergy meds, cold medicine)
Sunscreen (SPF 15+)
First aid kits and supplies
Contact lenses and glasses
Menstrual care products
COVID tests
Don't Over-Contribute
Since unspent FSA money can be lost, it's important to estimate your annual medical expenses carefully during open enrollment. Tips:
Add up last year's medical, dental, and vision expenses as a baseline
Factor in any planned purchases (new glasses, dental work, wellness products)
If you use Crates, factor in the wellness products you plan to cover
When in doubt, contribute slightly less than you think you'll need - it's better to leave a little on the table than to contribute too much and forfeit
What About HSAs?
If your employer offers an HSA option instead of (or alongside) an FSA, HSA funds never expire. They roll over indefinitely and the account is yours even if you change jobs. If the "use it or lose it" rule stresses you out, an HSA might be a better fit — talk to your employer's benefits team.
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