(NewsNation) — A flexible spending account, or FSA, is a use-it-or-lose-it health savings plan — but there is some flexibility.
An FSA is employer-sponsored, meaning you contribute money through your job’s health insurance plan. It is limited to $3,300 per year per employee and must be used within the health care plan year.
However, some employers offer a grace period to allow you to use your remaining balance beyond the plan year. The grace period begins the day after the end of the plan year, typically lasting two and a half months until March 15.
Money in an FSA is not taxed and can be used to pay for some health care costs, such as copays and deductibles. If you did not spend the money, you may want to ask your employer if a grace period is an option.
For example, if your plan year is Jan. 1 through Dec. 31, you could have until March 15 next year to use the remaining funds.
