FSAs are subject to the “use-it-or-lose-it” rule, which states that any unspent FSA funds at the end of each plan year will be forfeited to one’s employer. However, plans can offer one (or neither) of two options of relief for FSA users: the 2.5 month grace period and $500 rollover. The 2.5 month grace period gives FSA users two and a half months to spend down their remaining funds and file claims after the last day of their plan years. The $500 rollover allows FSA users to move up to $500 into next plan year’s allocation. Speak with your benefits administrator to find out if either of these options are in place, whose information can be found on the back of your FSA card.
Please login or Register to submit your answer