It is important to remember that a Flexible Spending Account is not a savings account. You must use all of your contributions each year or risk losing any unused balance at your employer’s designated plan year end.  You will need to refer to your employer’s Summary Plan Description (SPD) document for your employer’s designated plan end..

Plan Your Contributions

To avoid having any unused contributions at plan year end, you simply need to plan your contributions and monitor your account balance regularly. The planning part occurs during the annual enrollment period for the upcoming new plan year. You are asked to re-elect your annual contribution to your FSA each year. Before you make your election you should make a list of anticipated eligible expenses for yourself and any covered dependents. It is also a good idea to identify in advance a few eligible expenses and hold them "in reserve" in case you find you have an account balance remaining as the end of the benefit plan year approaches. For example, in order to use up any remaining account balance, you could purchase a pair of prescription sunglasses, have your teeth cleaned or replace an expiring prescription.

You may find a contribution planning calculator in the Health Care Multimedia presentation. Visit the Health Care Multimedia link in the menu to the left. Then jump to the menu in the presentation using the navigation link in the upper right corner of the presentation.

You may also print a copy of the Contribution Planning Worksheet and use it to tabulate your anticipated eligible expenses.