4 Last-Minute Tips If You Have the FSA Grace Period

Key Takeaways:

Some employers offer an FSA grace period, giving you up to 2.5 months to spend prior-year funds.
Grace period rules vary, so it’s essential to confirm whether your plan includes it.
A quick review of your balance, deadlines, and receipts can help you avoid losing money you’ve already set aside.
Practical, everyday health care items can be a simple way to use remaining FSA funds before the spending deadline.

If you still have unused FSA money sitting in your account, you’re not alone — plenty of people end the plan year with a little left over. If your employer offers an FSA grace period, you may have extra time to put that money to good use. Because grace period rules vary by employer, this is the perfect moment to double-check your plan details and confirm your FSA deadline.

What Does the FSA Grace Period Mean?

The FSA grace period is an optional extension some employers offer, giving you up to 2.5 extra months to spend leftover funds from the previous plan year. Many plans end this window on March 15, but deadlines can vary, so it’s important to confirm with your employer or FSA administrator.

Not all plans include a grace period, and it’s different from the run-out period, which only lets you submit receipts for past expenses. If your plan does offer it, the grace period simply gives you more time to use money you’ve already contributed and avoid forfeiting funds. For a deeper breakdown, check out FSA Grace Period vs. Run-Out Explained.

According to the IRS, employers may choose whether to offer a grace period, and unused funds may be forfeited if they’re not spent in time. Once you know how your plan is set up, you can use these four last-minute tips to finish the plan year:

Tip 1: Confirm Whether Your Plan Offers a Grace Period

Before doing anything else, check whether your plan actually includes a grace period.

Quick ways to verify:

Review your Summary Plan Description (SPD)
Check your FSA portal or benefits dashboard
Ask your HR team or plan administrator

This is also a good moment to confirm whether your employer offers a carryover, as you may see either a carryover or a grace period (not both).

What’s the difference?

Grace period gives you extra 2.5 months to spend your remaining funds (typically until March 15).
Carryover lets you roll over a limited amount into the next plan year.

And remember: the grace period is different from the run-out period, which only extends the time you have to submit claims from the previous plan year. A quick check now can save stress later. For more, check out our Grace Period Q&A.

Tip 3: Use Remaining Funds on Practical, Everyday Needs

If you’re wondering how to spend your remaining FSA funds, focus on items you’ll genuinely use. Last-minute shopping doesn’t have to feel rushed, and sticking to everyday essentials makes it easier. Try these popular eligible items:

Everyday health basics (pain relief, cold & flu needs, hydrating electrolyte drinks)
Seasonal supplies (allergy products, sunscreen)
First-aid refills (bandages, antiseptics, wound care)
Vision care (prescription eyewear, contacts, contact lens solutions, certain eye drops)
Home-health tools (thermometers, hot & cold packs)

Pro Tip: These easy-to-use tools can help you spend your remaining balance with confidence:

Eligibility List™—Check whether an item is FSA eligible before you add it to your cart.
Shop by Balance Tool—Filter products based on your exact FSA balance so you only see items within budget.

Shop FSA Store®

Tip 4: Gather Receipts and Submit Claims Before Your Deadlines

Spending deadlines and claim deadlines are not the same. Both matter. Keep in mind:

The grace period is the window during which you can incur new expenses using last year’s funds.
The run-out period is the time you have to submit receipts and claims for reimbursement for expenses incurred in the previous plan year.
These two dates are separate, and both vary by employer.
Submitting claims early can help avoid processing delays.
Keep digital receipts for anything you buy during the grace period.

Pro Tip: Shop at FSA Store® with your FSA card and skip the paperwork or claims — we automatically verify eligibility at checkout.

In Summary

If your employer offers an FSA grace period, a little planning can go a long way. Start by confirming your plan's rules, checking your balance, and identifying the deadlines you need to meet. From there, practical everyday essentials can help you use any remaining funds wisely (and prevent losing money you’ve already contributed).

If you’re planning ahead for the next year, our FSA Spending Calculator™ can help you estimate your contributions with confidence.

References

IRS. (2024). Flexible Spending Accounts: Grace Period Rules.

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