FSA Deadline 2026: What You Need To Know Before Your Funds Expire

If you still have money sitting in your Flexible Spending Account (FSA), knowing your FSA deadline for 2026 can help you avoid leaving those tax-advantaged dollars behind.

For many people with a calendar-year FSA, the FSA spending deadline for 2026 is December 31, 2026. What you may not know is that this deadline is not universal. Your employer may offer a grace period or allow some unused funds to carry over into 2027.

Here's what you need to know about when FSA funds expire, the rules that may give you extra time, and how to use your remaining balance before the deadline.

The general FSA deadline for most account holders is December 31, 2026. This means you typically need to spend your FSA funds by the end of the year. Your actual deadline though depends on your employer's plan year and plan rules.

Since employers have their own rules it’s best to check with your FSA administrator, benefits portal, Summary Plan Description, or HR department to confirm the rules that apply to you specifically.

Potentially. FSAs generally operate under a "use-it-or-lose-it" rule so if you don't use your unused funds by the applicable deadline, you may forfeit the unused balance.

This is one of the major differences between an FSA and a Health Savings Account (HSA). HSA balances belong to you and can roll over from year to year without expiring.

But don't automatically assume your entire remaining balance will disappear on December 31st. Your plan may offer a grace period or allow a portion of your balance to carry into the following plan year.

An FSA grace period gives you additional time after your plan year ends to incur new eligible expenses using funds remaining from the previous year.

Your employer can offer a grace period of up to 2½ months, so for a calendar-year plan ending December 31, 2026, the maximum grace period would generally run through March 15, 2027.

Not every employer offers a grace period though, and employers aren't required to provide the full 2½ months so don’t take for granted that this grace period applies to you.

If your employer permits an FSA carryover for 2026, up to $680 can be carried into the following plan year.

Keep in mind, employers aren't required to offer the maximum amount so it is possible that your employer may allow a smaller FSA rollover amount. And that’s assuming they allow a carryover as plans aren't required to offer carryover at all.

The good news is that carryover funds don’t reduce the amount you're allowed to contribute to your FSA for the new plan year so you’ll still be able to contribute the maximum amount for 2027 if you wish to do so.

Your FSA claim deadline for 2026 may be later than your spending deadline because your FSA may allow a run-out period.

A run-out period is the window after the plan year ends during which you can submit reimbursement claims for eligible expenses incurred before your spending deadline.

For example, your spending deadline might be December 31, but your plan could give you additional time to submit the documentation for a December purchase.

Generally speaking most plans offer a 90-day run-out period, but the length varies by plan so don't assume your FSA claim submission deadline for 2026 is March 31.

Financial instruments with all their rules and terminology can be confusing, and quite frankly, boring, if it’s not your thing. To make this simple, a carryover moves an allowed portion of your balance into the next plan year, while a grace period gives you extra time to spend your previous year's remaining funds. An FSA run-out period in contrast only gives you additional time to submit claims for expenses you already incurred within the applicable spending period.

Here’s a simple table to show each of these principles affect your FSA funds.

To find the deadlines that apply to your account:

1. Log into your FSA administrator or benefits portal.

2. Check your plan year and end date.

3. Look for information about a "carryover" or "grace period."

4. Find your claim submission or run-out deadline.

5. Check your remaining FSA balance.

6. Review your Summary Plan Description or contact HR if anything is unclear.

General health or wellness purchases aren't automatically qualified medical expenses simply because they support your health.

However, according to the IRS, dual-use products, which are products that can be used for general health and as a treatment for medical conditions, may be HSA/FSA eligible if accompanied by a Letter of Medical Necessity from a healthcare provider.

For example, you may have health-related expenses such as a gym membership, supplements, or other health products that can qualify if a licensed clinician decides that they are a medically necessary part of your treatment protocol.

Truemed*, helps qualified consumers determine whether certain health purchases may be eligible for FSA spending based on medical necessity.

*Truemed is for qualified customers. HSA/FSA tax savings vary. Learn more at truemed.com/disclosures.

If you need to know how to use FSA funds before the deadline, start with healthcare expenses you already expect to pay.

Common FSA eligible expenses can include prescription and certain over-the-counter medications, dental care, eye exams, prescription glasses and contact lenses, and eligible first-aid supplies.

Your potential FSA shopping list doesn’t end there though. Thanks to the dual-use product rule, you can purchase a wider range of health products if qualified and if the purchase is supported by the appropriate documentation.

These health products can include:

• Supplements like Vitamin D, creatine, and greens powders
• Red light therapy devices
• Sleep tools like specialized mattresses and sleep devices
• Fitness equipment
• Gym memberships and classes
• Wearables
• Saunas and cold plunge pods
• Water filters, humidifiers, and air purifiers

These are just some of the categories of products that are generally eligible with a LMN. You can check out our Ultimate list of over a 100 HSA/FSA eligible products for more ideas.