The end of the year isn’t just a time for celebration. It’s also the deadline for millions of Americans to use up the money in their Flexible Spending Accounts (FSA). The only exception is for employees who got a grace period from their employer. According to the FSA store, a website that sells FSA-approved products, that grace period likely lasts until March 15. However, the recently-passed Consolidated Appropriations Act 2021 allows employers to “expand this grace period up to 12 months from your deadline.”
“Your employer could give you a few extra months to spend your 2021 FSA dollars, or even more time for added flexibility,” the FSA Store said. “It is important to note that these changes expire at the end of the 2022 plan year, at which point the grace period will revert to 2 1/2 months.”
The FSA store went on to say the new law even “gives employers the option of waiving your FSA deadline for 2021.” Employers even “have the option of allowing you to roll over all of your unspent FSA dollars into the next plan year.”
For those who do still have an end-of-the year deadline to spend the money in their FSA, the FSA Store isn’t the only place to go. Other destinations include Target, Amazon and the website Health Products for You.
These sites sell a wide variety of medical items that are FSA-eligible, including pandemic-related items like at-home COVID-19 tests, masks and oximeters. Eye care also falls under FSA, meaning items like prescription contacts, eyeglasses and sunglasses, are all FSA-eligible.
The FSA deadline is also the perfect time to throw out expired medicine, as FSA funds can be used to stock up on over the counter medications that may be needed in the year ahead.
Consumer health and and wellness online retailer Health-E Commerce estimates Americans forfeit about $500 million per year in unused FSA funds.
