What happens if there is money left in the FSA at the end of the year?
• FSAs are subject to a use-it-or-lose it rule but employers do have the choice to give employees a two-and-a-half month grace period immediately following the end of a plan year to use up funds for the year. Thus, if the plan year ends December 31, you may give your employees until March 15 to use their health FSA funds from the previous year.
