Q. Is Dec 31 or March 15 of the following year the deadline to use up the Flexible Spending Account money?
A. It depends on your plan, there are total 3 possible options offered by an employer regarding the deadline to use up FSA money:
1. Dec 31
Most plans' deadline is Dec 31 of the same year, if you don't use it up, you lose it.
2. Mar 15
Some plans offer a grace period to March 15 of the following year, you can spend the money till March 15 of the next year.
3. $500 Carryover
Some plans offer $500 carry over option which means you can carry over up to $500 to spend in the entire next year.
An employer can not offer the option 2 and option 3 at the same time, so one way or the other.
A. It depends on your plan, there are total 3 possible options offered by an employer regarding the deadline to use up FSA money:
1. Dec 31
Most plans' deadline is Dec 31 of the same year, if you don't use it up, you lose it.
2. Mar 15
Some plans offer a grace period to March 15 of the following year, you can spend the money till March 15 of the next year.
3. $500 Carryover
Some plans offer $500 carry over option which means you can carry over up to $500 to spend in the entire next year.
An employer can not offer the option 2 and option 3 at the same time, so one way or the other.
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