FSAs are typically use it or lose it during the plan year. You have 90 days after the end of the plan year to submit all of your receipts for reimbursement for services incurred during the plan year. This is an IRS rule. Your employer doesn’t want you to leave any money in your account. To avoid this “use it or lose it” rule, you should carefully plan how much money you want to deposit each year. To help you use up all deposits for each year, you will receive a “left to spend” report approximately 30 days before the end of your plan year detailing any money left in your account to spend. You will then have time to spend the money before the end of the plan year.
Your plan may include an optional feature called a “grace period” or a “carry over”. Check with FlexBank to be sure. There’s more information on these features under Participant Forms & Brochures.