Understanding FSA Deadline Extensions: 6 Facts about the March 15 FSA (Flexible Spending Account) Grace Period from FSA Store®

FSA Store ® experts clarify deadline misconceptions to help an estimated 70% of account holders avoid forfeiting an average of $463 in unused funds to a missed deadline

DALLAS, Jan. 28, 2026 /PRNewswire/ -- According to FSA Store ® experts, approximately 70% of people who are enrolled in FSAs have some type of deadline extension. However, low understanding of how deadlines and eligibility work leads nearly half of these individuals to forfeit on average $463 in unused funds each year, according to data from VISA. To reverse this trend, FSA Store ®, the first and leading online store dedicated to selling only products and services that can be paid for with tax-free flexible spending account (FSA) funds, addresses common misconceptions and misrepresentations of FSA rules related to the March 15 grace period deadline, the FSA carryover, and FSA eligibility in the following list of six facts all FSA users should know.

"While no one likes deadlines, it's important to understand that the potential tax savings of an FSA outweigh the risk of forfeiture," said Rachel Rouleau, chief compliance officer for Health-E Commerce ®. "Employees forfeited an average of $463 from their FSA funds last year. While we hope to see this number decrease with the thousands of ways consumers can responsibly spend down their FSA dollars, even if you do forfeit, the tax savings typically outweigh the lost funds. For example, if you contributed the maximum amount of $3,300 to your FSA in 2025 and you forfeit the average of $463, your approximate annual tax savings will be $990 (depending on your tax bracket), so it was still worth the election."

Take these steps to avoid forfeiting FSA funds:

To learn more about FSA deadlines and how to spend funds, visit FSAstore.com.

About Health-E Commerce ®

Health-E Commerce ® is the parent brand to FSA Store ® and HSA Store ®, online stores that serve the 70+ million consumers enrolled in pre-tax health and wellness accounts. The company also created Caring Mill ®, a popular private-label line of health products through which a portion of every purchase is donated to the Children's Health Fund. Since 2010, the Health-E Commerce ® brands have led the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce ® plays an essential role in expanding product eligibility for important new categories within the list of eligible medical expenses.

SOURCE Health-E Commerce