FSA funds should be spent on eligible medical expenses within your benefit plan year. Any unused funds will go back to your employer. Select FSA plans may have a carryover period OR a grace period to help avoid losing FSA funds at the end of your benefit plan year. Your plan may also have a run-out period, which will give you additional time to submit your reimbursement claims for the prior benefit plan year.
For example, if you have a December 31st FSA deadline, you may have the option to carry up to $570 of your balance to your new plan year. OR you may have a grace period that will allow you an additional two months and fifteen (15) days (e.g. March 15th) to spend your FSA dollars on qualified expenses.
Employers do not have to offer any of these options for their FSA plans, so please check with your benefit plan administrator on what options you may have at the end of your plan year.