The IRS reminds taxpayers that FSAs for qualified health expenses are generally subject to a “use it or lose it” rule, meaning that the taxpayer forfeits any funds remaining in the account at the end of the year.

However, in many cases, employers may allow either a grace period to use up FSA funds from the previous year, or a partial carryover of funds to the next year.

If you have money remaining in your 2021 FSA, check with your employer’s benefits department about whether you have a carryover or grace period option. If not, you may want to schedule qualified medical purchases or procedures now, to ensure that you use up FSA funds before January 1.