All monies in an FSA should be spent by the end of the calendar year. However, some users may roll $550 over to the next year if they are unable to spend it. Alternatively, they may have a 2.5-month grace period to use the funds, but they can't do both. Check your plan to see if this is possible. If you can't use the money or the grace period, the money in the account defaults to your employer's account.