How to Use Your FSA Before the Deadline

Flexible Spending Accounts (FSAs) operate on a “use it or lose it” rule. Any unused balance at the end of the plan year (usually December 31, 2026) is forfeited unless your employer offers a grace period or carryover. In 2026 the employee contribution limit for a health care FSA is $3,400. Knowing exactly what you can spend on and when can save you hundreds of dollars. This guide explains how to maximize your 2026 FSA before the deadline. 2026 FSA deadlines and rules Most plan years end December 31, 2026. Many employers offer a 2½-month grace period (until March 15, 2027) or a carryover of up to $680 into 2027. Check your plan documents or summary plan description for your exact rules. Eligible FSA expenses You can use FSA funds for IRS-qualified medical, dental, and vision expenses, including: Doctor visits, copays, deductibles, and coinsurance Prescription and over-the-counter medications (with a prescription for some items) Dental cleanings, fillings, braces, and orthodontics Vision exams, glasses, contacts, and LASIK Eligible over-the-counter items such as bandages, first-aid supplies, sunscreen, and menstrual products Certain wellness items (check your plan) You cannot use FSA dollars for health insurance premiums, gym memberships, or cosmetic procedures. Step-by-step plan to use your FSA Check your current balance Log into your FSA administrator portal or call the customer service number on your debit card. Make a list of upcoming eligible expenses Schedule any needed doctor visits, dental cleanings, or eye exams before the deadline. Buy new glasses or contacts. Stock up on eligible over-the-counter supplies. Submit reimbursement requests early Save all receipts. Submit claims as soon as you incur the expense rather than waiting until year-end. Use your FSA debit card Many plans issue a debit card that works directly at eligible providers and pharmacies. Coordinate with your Health Savings Account (HSA) if you have both You cannot contribute to both an FSA and HSA in the same year unless the FSA is limited-purpose (dental/vision only). What to do if you still have money left Use the grace period or carryover if offered. Consider a dependent-care FSA if you have eligible child-care or elder-care expenses. Plan next year’s contribution based on this year’s usage. Next steps with Bill Advantage Use Bill Advantage’s Healthcare Financial Planning tool (available in the Member tier and above) to track your FSA balance, project year-end spending, and generate a checklist of eligible expenses before the deadline. Pair it with the Insurance Statement Decoder for any related claims questions.

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Bill Advantage is a document literacy tool. Nothing in this article constitutes legal or medical advice.