If you have a Flexible Spending Account (FSA), the clock may already be ticking on your remaining funds. Users lose millions of FSA dollars every year due to missed deadlines and uncertainty about what’s eligible and what isn’t--but that’s where we come in.
With just a little bit of planning and preparation, you can make the most of your FSA funds and avoid forfeiting your hard-earned money. Regardless of your deadline, we want to offer some tips on how to spend your leftover money before time runs out.
Unused FSA Funds & Your Options
FSAs are subject to the IRS’s “use-it-or-lose-it” rule, which means any unused funds may be forfeited at the end of your plan year. However, many employers offer a grace period or carryover, which can give you extra time or flexibility.
Grace Period vs. Carryover: What’s the Difference?
Understanding your plan’s rules is the first step to avoiding forfeiture. Here’s how these two options can give you more time to use your unused funds.
Grace Period
- Gives you extra time—two full months and 15 days after your previous plan year ends—to spend unused funds. For the January 1 plan start, this grace period typically ends on March 15.
- You can use your remaining money from your previous plan year on new, eligible expenses incurred during the grace period.
- Any unused funds after the grace period are forfeited.
Carryover
- Allows you to roll over a set amount of your unused funds into the new plan year.
- The IRS carryover limit is up to $680 for 2026, but employers may set a lower carryover limit. Always check with your employer for your specific carryover limit, if available.
- Unlike a grace period, you can typically use carryover funds throughout the entire new plan year rather than for a specific time frame.
It’s important to note that employers can offer either a grace period or a carryover, but not both. Check your plan details with your employer or HR department to know which applies to you.
Checking Your FSA Deadline Before You Start Spending
Before you start shopping, check account information in your FSA administrator’s online portal if possible, review plan year-end dates, confirm whether your plan offers a grace period or carryover, and review your current FSA balance. Taking a moment to complete these steps will give you a clear picture of your position and help you better prepare to make smart spending decisions, avoiding last-minute stress.
Smart Ways to Spend Leftover FSA Money
So you have leftover funds—now what? Many everyday health and wellness items are FSA-eligible and easier to stock up on than you might think. Put your FSA funds to use with these spending tips:
Stock Up on Medicine Cabinet Essentials
These are practical purchases you’ll use year-round:
- Pain relievers and fever reducers
- Cold, flu, and allergy medications
- First aid supplies like bandages, gauze, and antiseptics
- Digestive health products and antacids
Prescriptions are no longer required for most over-the-counter medications, making them some of the easiest FSA purchases.
Refresh Your Health & Wellness Routine
These products aim to support your everyday well-being:
- Sunscreen and SPF lip balm
- Acne treatments and eczema relief products
- Feminine care and period products
- Orthotic inserts and foot care items
Not only are these purchases eligible, but they’re also practical and easily overlooked. Don’t let them slip by you this year!
Invest in Eligible Health Tech
These higher-ticket items can be a smart way to use up a remaining balance:
- Blood pressure monitors
- Thermometers and pulse oximeters
- Heating pads and TENS units
- Sleep aids like CPAP supplies or blue-light-blocking glasses
If you have a larger leftover balance to spend, these items can make bigger dents in unused funds while offering significant long-term value.
Cover Vision & Dental Needs
Many people forget these categories are eligible, though these items and services are very popular and even necessary in many cases:
- Contact lenses and contact lens solution
- Prescription glasses and sunglasses
- Dental care items like night guards
- Orthodontic items like braces or aligners
These services and products can also be pricey, so putting unused funds from a previous plan year can also help you make better use of your new plan year funds.
Don’t Forget About Eligible Services
If your deadline is approaching and you prefer services over products, consider:
- Copays and deductibles
- Chiropractic care
- Physical therapy
- Mental health counseling
- Eye exams and dental treatments
- Certain telehealth visits
Remember, some services meant to treat or cure an illness might require a Letter of Medical Necessity (LMN) to be eligible. A Letter of Medical Necessity must be completed by your provider and submitted for a specific treatment once a year. Double-check with your employer if certain services require additional documentation to be eligible.
Use Your FSA Before It’s Too Late
Unused FSA funds don’t roll over automatically, and once the deadline passes, they’re gone. Taking a few minutes now to review your balance and shop eligible categories can help you maximize the money you’ve already earned.
Shop popular FSA-eligible categories today and make the most of your benefits before your deadline hits. Your future self—and your wallet—will thank you.
Last-Minute FSA Spending Tips
- Shop online for fast, eligible purchases from trusted FSA/HSA stores
- Filter by eligibility to avoid denied claims
- Keep receipts just in case your administrator requires documentation
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Don’t wait until the final day to avoid shipping delays and inventory issues
