FSA Deadline 2026: What to Buy Before Your Money Is Gone

Short answer

For most people, 2026 FSA money has to be spent by December 31, 2026. If your employer added a grace period, you have until March 15, 2027. If your employer chose carryover instead, up to $680 rolls into 2027 and the rest is forfeited. Log in to your plan's portal and check which one you have; it takes two minutes. Then spend what is left in this order: things you need anyway with no paperwork (glasses, contacts, a blood pressure monitor, allergy medicine), then the bigger items that need a letter of medical necessity (a gym membership, a walking pad, a mattress), with the letter dated before you buy.

This applies to FSAs only. HSA money never expires, so there is no reason to rush an HSA.

When is the FSA deadline for 2026?

It depends on which of three rules your employer picked, and your employer can pick only one of the second two.

There is a fourth date that trips people: the run-out period. That is the deadline to file claims for purchases you already made, often March 31 for a calendar-year plan. You cannot buy anything new during run-out; you can only submit receipts. The 2026 contribution limit is $3,400, so a household that maxed out and spent little could be looking at a four-figure forfeiture.

How do I find out which FSA deadline I have?

Log in to your FSA administrator's website and look at the plan details page for the words "grace period" or "carryover." If neither appears, assume December 31. The same page shows your remaining balance and usually the run-out date. If you cannot find it, the summary plan description your HR team sent at open enrollment has it, and HR can answer in one email. Do this in November, not the last week of December, because letter items take a day to arrange and some purchases take a week to ship.

What should I buy with $100 left in my FSA?

Restock the things you buy anyway and pay for with after-tax money the rest of the year. None of these need a letter or a prescription; save the receipt and file.

Period products, pregnancy tests, and over-the-counter pain and cold medicine belong on this list too. The card usually works at the pharmacy for all of them.

What should I buy with $500 left in my FSA?

This is the range where a letter of medical necessity starts paying for itself. A $35 letter turns a $399 walking pad from an after-tax purchase into a reimbursed one.

What should I buy with $1,500 or more left in my FSA?

At this level you are looking at one big-ticket item, and all of them need a letter. A Peloton Cross Training Bike is $1,695. An Eight Sleep Pod 4 starts at $2,449 for a full. A Sunlighten Solo infrared sauna runs roughly $2,295 to $3,295 at third-party sellers. Any of them can qualify for reimbursement when a clinician documents the condition it treats (a mattress for chronic back pain, a bike for high blood pressure, a sauna for arthritis) and the letter is dated before the order. Dental work you have been putting off and prescription sunglasses ($195 at Warby Parker) round out the no-letter options at this size.

Here is the mistake that costs people the most: they buy the big item on December 30 with the FSA card, the card declines or the plan asks for documentation in January, and there is no letter dated 2026. Get the letter on the day you decide, then order.

When do I need the letter by?

Before you buy, and for a standard plan, before December 31. The letter's date has to be on or before the receipt date, and the receipt date has to fall inside your plan year or grace period. A letter requested through Burst is usually signed the same day, so a December 29 request still works for a December 30 order. Waiting until the store's return window closes to think about the letter does not.

Does any of this apply to an HSA?

No. HSA balances roll over every year with no limit and no deadline, and you can reimburse yourself years after a purchase. If you have both accounts, spend the FSA down first and leave the HSA alone.

How to get a letter for a year-end FSA purchase

1. Pick the item and go to app.getburst.com/request-lmn. The form takes under 2 minutes and costs $35, one time.

2. A licensed clinician reads your request the same day in most cases and, when a letter is warranted, signs it and sends it to your email. When it is not, your $35 is refunded without you asking.

3. Order the item from any store with any card, before your deadline.

4. Forward the receipt to Burst. Burst handles the claim, your FSA administrator pays you, and a denial means the $35 is returned to you.

Frequently asked questions

Is the 2026 FSA carryover $660 or $680?

$680. The IRS raised the carryover cap to $680 for 2026 plan years in Revenue Procedure 2025-32, so up to $680 of unspent 2026 money can move into 2027 if your employer offers carryover. The 2025 figure was $660.

Can I have both a grace period and carryover?

No. Your employer can offer one, the other, or neither.

Can I buy something in January and count it toward 2026?

Only if your plan has a grace period, which runs through March 15, 2027. Without one, a January purchase comes out of your 2027 election.

What is the FSA contribution limit for 2026?

$3,400 per employee, up $100 from 2025. Your spouse can elect another $3,400 through their own employer's plan.

Can I spend my FSA on my spouse or kids?

Yes. An FSA covers expenses for you, your spouse, and your tax dependents, so a child's glasses or a spouse's blood pressure monitor count.

Related: The March 15 grace period, explained, What can I use my FSA funds on?, How to reimburse purchases from your FSA, and How much should I contribute to my FSA?.