There is a "use-it-or-lose-it" requirement with FSAs: Any money left in the account at the end of the plan year (or by March 15th of the following year if the employer offers a grace period) is lost to the employee. So it's important to only allocate for expenses that you know you'll incur (instead of a grace period, employers can opt to allow employees to carry over up to $500 in unused FSA funds from one plan year to the next). For 2020 and 2021, the rules were relaxed in response to the COVID pandemic. The 2021 Consolidated Appropriations Act allowed employers the option to let employees roll over any amount of unused FSA amounts from 2020 to 2021, and from 2021 to 2022, for use at any time during the year. But as of 2022, the normal rules are once again in place. This means that funds that the "use it or lose it" rule will once again apply to funds that aren't used up by the end of 2022. Employers can offer the normal 2.5-month grace period or a $500 rollover at the end of 2022, if they choose to do so.