What happens to the funds left in my account at the end of the plan year?
• Any funds left in your account at the end of the year are forfeited. However, if your employer has elected to include a “grace period” within your plan, you will be allowed an additional 2 ½ months after the end of your plan year to use your FSA funds. For example, if your plan year ends on December 31, your employer will allow expenses to be incurred through March 15. You can avoid forfeitures if you plan carefully by reviewing your prior year’s out-of-pocket expenses to estimate what you will spend in the next year, and also make sure to be conservative and plan only for predictable expenses.
