How to Use Your FSA Before It Expires (2026 Guide)
How to Use Your FSA Before It Expires (2026 Guide)
Every year, unspent Flexible Spending Account dollars are forfeited because account holders miss deadlines or don’t know what’s eligible. If you don’t learn how to use your FSA before it expires, that money is gone for good — wasted healthcare dollars from your own paycheck.
How This Guide Was Built
This guide’s facts are sourced exclusively from official IRS publications (IRS Pub. 969, IRS Pub. 502, IRS IR-2025-103), the federal FSA program (OPM/FSAFEDS), a major FSA administrator (Optum Financial), and retailer list prices. Every source URL was verified to return an HTTP 200 status, and all facts were cross-checked on August 22, 2026. We did not open FSA accounts, file claims, or make purchases for this guide; all figures come from the cited IRS, OPM, and retailer sources. Last verified: August 2026.
How much can I put in an FSA in 2026?
For the 2026 plan year, the IRS has set the maximum FSA contribution at $3,400, an increase from $3,300 in 2025 (IRS IR-2025-103). The maximum amount you can carry over to the next year is $680 in 2026, up from $660 in 2025 (IRS Pub. 969).
How do I use my FSA before it expires?
You use your FSA before it expires by spending the balance on eligible medical, dental, and vision costs before your plan’s deadline; anything left is forfeited under the use-it-or-lose-it rule, unless your plan offers a 2½-month grace period or carries over up to $680 (IRS Pub. 969). Your employer generally cannot refund the balance to you.
When is the FSA claims deadline?
The standard claims submission deadline for the federal FSAFEDS program is April 30 of the year following the end of your plan year (OPM FSAFEDS). However, deadlines for private employer-sponsored plans vary significantly, so you must check your specific plan documents or with your FSA administrator (Optum Financial).
What can I buy with my FSA?
You can buy a wide range of medical care costs, including eyeglasses, contact lenses, eye exams, dental treatment, bandages, prescribed drugs, and diagnostic devices (IRS Pub. 502). Over-the-counter medicines are eligible with or without a prescription, as are menstrual care products, thanks to the CARES Act rule referenced in IRS Pub. 969 (IRS Pub. 969).
What should I spend my FSA on before year end?
Spend your remaining balance on high-cost, always-eligible items you’ll use anyway, prioritizing the priciest predictable needs first so the least amount is at risk — eyeglasses, contacts, dental work, and an OTC stock-up all qualify at the verified retail prices below.
- Vision: new eyeglasses start at $95 (Warby Parker); a year’s supply of contact lenses runs $150–$1,000 by type (Warby Parker).
- Dental: a cleaning costs $85–$160 or a filling $110–$530 with your provider (Delta Dental).
- Major work: braces start from $3,000 and can absorb a large balance (Humana).
- OTC stock-up: sunscreen $9.88 (Walmart), bandages $8.97 (Walmart), thermometer $10.32 (Walmart); pair with a prescription discount card for drug costs.
FSA vs HSA: which saves you more?
An FSA is an employer-offered account best for predictable, annual healthcare costs you can front-load, while an HSA requires a high-deductible health plan, is portable, and lets unused funds roll over indefinitely, making it a superior long-term savings vehicle for those eligible (IRS Pub. 969). Learn more about how to maximize your HSA.
| Feature | FSA | HSA |
|---|---|---|
| Eligibility | Employees with an employer plan | Individuals with a qualifying HDHP |
| Rollover | Limited carryover or grace period | All unused funds roll over |
| Who Offers | Employers only | Banks, credit unions, or insurers |
| 2026 Contribution Limit | $3,400 | $4,400 (self-only) / $8,750 (family) (IRS Rev. Proc. 2025-19) |
How do I avoid losing FSA money next year?
To avoid forfeiting money in 2027, elect only what you’re confident you’ll spend based on expected procedures. Front-load predictable expenses like annual physicals or routine dental cleanings early in the year. Most importantly, keep all receipts and Explanation of Benefits documents as proof of eligibility (IRS Pub. 969). Use our health finance tools to plan.
FAQ
Can I use my FSA for over-the-counter medicine?
Yes, you can use your FSA for over-the-counter (OTC) medicine, as the CARES Act made these items permanently eligible whether or not you have a prescription, a rule confirmed in IRS Publication 969 (IRS Pub. 969).
Does unused FSA money carry over to next year?
Generally, unused FSA money is forfeited due to the use-it-or-lose-it rule. However, your employer can choose to offer either a grace period of up to 2½ months or a carryover of up to $680 for 2026, but not both (IRS Pub. 969).
What happens if I have leftover FSA money?
Under standard use-it-or-lose-it rules, your employer is not required to refund your remaining FSA balance, and the funds are forfeited. Your plan’s specific provisions for a grace period or carryover determine if you can retain some funds (IRS Pub. 969).
For more details, refer to the official guidelines in IRS Pub. 969, IRS Pub. 502, and the IRS 2026 inflation adjustments, and use our health finance tools to plan your strategy.