Fact vs. Fiction Archive

Fiction: If you don't use all the money in your flexible spending account (FSA) by year-end, it will be forfeited.

Fact: The money you put in an FSA generally must be used by year-end or it will be forfeited. The IRS does, however, allow participants to carry over up to $500 in FSA funds into the next year. Your employer must elect to participate in this option, so check with your human resources department to find out if it's available. If your employer has not elected this option, it may be a good time to schedule doctor's appointments or stock up on items that are eligible for flexible spending. Be sure to review your account balance so that you don't lose your hard-earned dollars!

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