Fact vs. Fiction Archive

Fiction: The money in your flexible spending account carries over every year.

Fact: With some flexible spending accounts (FSAs), you may forfeit your funds if you don't use them by year-end. Others offer a grace period of two and a half months or allow you to carry over up to $500 into the next year. (Check with your employer to see what options are available.) The best way to calculate your FSA allotment is at the end of the year; base the next year’s FSA on the excess or deficit in your account at that time.

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