FSA deadline 2026: the dates that decide your money
Your FSA money was deducted from your paychecks all year — but it belongs to the plan year, not to you indefinitely. Here's exactly when the 2026 clock runs out, the three plan features that can move the date, and what to do in each case.
The default: December 31, 2026
Most health-FSA plan years follow the calendar year, so the spend deadline for 2026 elections is December 31, 2026. An expense counts for the deadline when the care happens or the purchase is made — not when you file the claim. Order placed December 31, shipped January 5? Fine. Appointment on January 2? Next plan year's money.
Employers can run non-calendar plan years (July–June is common in education), so if you don't remember picking your election amount last fall, check the plan documents before assuming the December date applies to you.
The three plan features that move your real deadline
1. Grace period. Some plans give you 2.5 extra months to spend — through March 15 of the following year. New purchases during the grace window draw down the old year's balance first.
2. Carryover. Instead of a grace period, a plan can let a capped amount roll into the next plan year — up to $680 for 2026 plan years. Everything above the cap is still forfeited, so a $1,200 balance on a carryover plan still has money at risk. (Our spend-down calculator does this subtraction for you.)
3. Run-out period. Separate from both: after the spend deadline, you typically get ~90 days to file claims for expenses you already incurred during the plan year. If you paid out of pocket for anything eligible in 2026 — a July prescription, an October dental visit — dig out the receipts; that money is still claimable during run-out.
A plan can have a grace period OR a carryover — never both
IRS rules force the choice, and many employers elect neither. Which one you have is the single highest-leverage fact in this guide: it decides whether your December is a sprint, a stroll, or already safe. It's in your summary plan description, usually under "grace period" or "carryover."
What actually happens to forfeited money
Forfeited balances go back to your employer, which can use them to offset plan administration costs or redistribute them to participants. You can't get your specific dollars back after the run-out window closes — there's no appeal for "I forgot." The money was pre-tax, which softens the loss slightly, but forfeiting $400 you already earned is still forfeiting $400.
Your December playbook, by plan type
No grace, no carryover: everything unspent on December 31 is gone. Run the calculator now and book lead-time purchases (eye exam, dental work) before December calendars fill.
Grace period: your real deadline is March 15 — set the calculator to it and breathe. Still don't coast: the grace window overlaps with the new year's elections and is easy to forget.
Carryover: only the amount above your plan's cap is at risk. Spend that slice down, and let the rest roll.
FAQ
When is the FSA deadline for 2026?
December 31, 2026 for most plans, because most health-FSA plan years follow the calendar year. Employers can run non-calendar plan years, and plans with a grace period extend spending to March 15, 2027. Your plan documents or benefits portal have the dates that actually bind you.
What happens to FSA money I don't spend by the deadline?
It's forfeited to your employer — the use-it-or-lose-it rule. Employers typically apply forfeitures to plan administration costs. Industry estimates put nationwide forfeitures above $4 billion a year, almost all of it in small individual balances people didn't get around to spending.
What's the difference between the grace period and the run-out period?
The grace period extends when you can SPEND (usually 2.5 extra months, through March 15). The run-out period extends when you can FILE claims for expenses you already incurred before the deadline (typically 90 days). Every plan has some run-out; only some plans have a grace period.
Can my plan have both a grace period and a carryover?
No. IRS rules let a health FSA offer at most one softener: a grace period OR a carryover (up to $680 for 2026 plan years). Many plans offer neither. Which one you have changes your December strategy completely, so this is the single most important thing to look up.
What happens to my FSA if I change jobs mid-year?
FSA coverage generally ends with your employment, and you can only claim expenses incurred while you were covered — the rest is forfeited even in June, unless you continue the FSA through COBRA (rarely worth it without large known claims coming). If a job change is on the horizon, spend the balance down before your last day. One quirk in your favor: the full annual election is available from day one, so a new employer's FSA can cover a big expense immediately.
Last reviewed 2026-06-11. Based on IRS Publication 502 and published IRS guidance. Not tax, legal, or medical advice — your plan administrator has the final say.