Guide · Updated October 30, 2026
FSA deadline 2026: when does your FSA money expire?
For most people with a calendar-year health FSA, the last day to spend 2026 money is December 31, 2026. Your plan can move that date with a grace period, soften it with a carryover, or give you extra time to file claims. Here's how to work out your real deadline.
Short answer: check your plan year end date, then check whether your plan has a grace period (spend until as late as March 15, 2027), a carryover (keep up to $680 for 2027), or neither (spend it by December 31). The run-out period is extra time to file claims, not to spend.
The use-it-or-lose-it rule
A health flexible spending account (FSA) lets you set aside pre-tax money from your paycheck for medical costs. The trade-off is the use-it-or-lose-it rule: money you don't spend on eligible expenses by the end of the plan year is forfeited and goes back to your employer. It doesn't come back to you as cash, and it doesn't follow you to the next year unless your plan says so.
Federal rules allow employers to soften this in one of two ways, a grace period or a carryover, but a plan can't offer both. Many plans offer one of them, and some offer neither.
Step 1: find your plan year end
Most FSAs run on the calendar year, January 1 to December 31. Some follow the employer's fiscal year instead, for example July 1 to June 30. Your plan year end is the starting point for every other date below.
You'll find it in your benefits portal, in your enrollment confirmation, or in the plan's Summary Plan Description (SPD). If you can't find it, your FSA administrator (the company named on your FSA card) can tell you.
Step 2: check for a grace period
A grace period gives you up to 2½ extra months after the plan year ends to spend the remaining balance. For a calendar-year 2026 plan, the longest possible grace period runs through March 15, 2027. Expenses you have during that window can be paid from your 2026 money.
Your employer can choose a shorter grace period, so don't assume March 15. If your plan has one, the date will be in your plan documents.
Step 3: check for a carryover
A carryover lets you move part of your unused balance into the next plan year. For plan years starting in 2026, the IRS maximum is $680. Anything above the carryover amount is still forfeited at the end of the plan year. Employers can set a lower limit.
Even with a carryover, it usually makes sense to spend down to the carryover amount by December 31. Our grace period vs. carryover guide compares the two in detail.
Step 4: don't confuse the run-out period with your deadline
Most plans also have a run-out period: extra time after the plan year to submit claims for expenses you already had during the year. It's often around 90 days, so March 31 is common for calendar-year plans, but your plan sets the length.
The run-out period doesn't let you buy anything new. A pair of glasses bought on January 10, 2027 isn't a 2026 expense just because you file the claim in the 2026 run-out period, unless your plan has a grace period that covers that date.
Your deadline at a glance
| Your plan has | Last day to spend 2026 money | What happens to the rest |
|---|---|---|
| Neither | December 31, 2026 | Forfeited |
| Grace period | Up to March 15, 2027 (check your plan) | Forfeited after the grace period |
| Carryover | December 31, 2026 | Up to $680 moves to 2027; anything above it is forfeited |
These dates assume a calendar-year plan. For a different plan year, count from your own plan year end.
Tallydown works out this date for you. Enter your balance, plan year end and plan type, and it counts down to your real last day to spend, on your iPhone and on your Lock Screen.
If you leave your job
Leaving your employer usually ends your FSA on your last day of coverage. Expenses after that date generally can't be paid from your account, even if you have money left, unless you continue coverage through COBRA. If you're planning a job change, check your plan's rules and use your balance before your last day.
How to use your balance before the deadline
December is the busiest month for eye doctors and dentists because everyone has the same deadline. A simple order that works:
- Book appointments now. Eye exams, new glasses or contacts, and dental cleanings fill up first. Book them in November if you can.
- Refill prescriptions. Ask whether your pharmacy can fill a 90-day supply of regular medicine.
- Restock last. First aid supplies, sunscreen, over-the-counter medicine and menstrual products can be bought any day up to the deadline. See the list of FSA-eligible expenses.
- Keep every receipt. Your administrator can ask you to prove that an FSA card purchase was eligible.
- File claims before the run-out period ends.
Dependent care and limited-purpose FSAs
This guide is about health FSAs. A dependent care FSA, which pays for child or adult care, follows different rules and can't carry money over. A limited-purpose FSA, often paired with an HSA, usually covers only dental and vision care. Check your plan documents for either one.
Sources
- IRS, Revenue Procedure 2025-32, section .15 (2026 health FSA limit of $3,400 and carryover maximum of $680)
- IRS, Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans (FSAs, grace period and carryover)
Tallydown isn't tax, legal or medical advice. Your plan documents and administrator have the final word on your deadline and what's eligible.