Question

Are there Tax policies associated with funds left unclaimed in an FSA?

Forum|Forum|4 years ago
December 30, 2021
1 reply
0 views

Due to COVID and kids at home I did not use all my dependent care FSA in the period 07/01/2020 - 06/30/2021. The deadline for claims is tomorrow, do I really loose all that was not spent or is there a Tax benefit associated with this 'lost' savings.

TurboTax Online

M

mglauner

Yes, you could lose the balance in your FSA account. Though December 31st is the end of the tax year, your employer may have a 'grace period' for you to submit expenses.

Some employers stopped FSA contributions last year, and employers also have the option to let you roll over up to $500, if they choose to do so.

Check with your employer for your specific FSA.

Click this link for more detailed info on FSA's.