Your FSA Money Expires December 31 — the $680 Rule That Decides What You Keep
Your FSA Money Expires December 31 — the $680 Rule That Decides What You Keep By Daniel Kim If you put money into a health flexible spending account this year, part of it may already be scheduled to disappear. A health FSA is use-it-or-lose-it by design: money you do not spend on eligible medical expenses by the end of your plan year generally goes back to your employer. For most people on a calendar-year plan, that date is December 31, 2026. Two IRS rules soften the blow — a carryover of up to $680, or a grace period of up to two and a half months — but your plan offers at most one of them, and neither is automatic. December is crowded with benefit deadlines: Medicare Open Enrollment ends December 7, and if you have not checked your 2027 drug coverage, that deadline matters more than this one . This post works through the 2026 numbers, three worked examples, and the checklist to run before December 31. TL;DR For calendar-year plans, unspent 2026 health FSA money is fo...