What are the risks of participating in a health care or dependent care FSA?
FSA dollars are “use-it-or-lose-it” funds. Account balances cannot be carried over from year to year. If you have any unused funds at the end of the plan year, or at the end of any applicable grace period, those funds will be forfeited. That’s an IRS requirement. So estimate what you want to direct to your FSA carefully.
