FSA and HSA Year-End Deadlines 2026: Rules, Limits, Expenses

If you have money left in a health FSA, you generally have to spend it by December 31, 2026, unless your employer’s plan offers a grace period (up to March 15, 2027 for calendar-year plans) or a carryover (up to $680 into 2027). HSA money never expires, but the last day to make 2026 HSA contributions is your tax-filing deadline in April 2027. This guide covers both accounts’ year-end rules, the official 2026 limits, and a practical list of what you can still buy before the clock runs out.

Updated October 2026. Limits checked against IRS releases and publications on October 22, 2026. Tax rules change and every employer plan is different, so confirm details with your plan administrator or a tax professional.

Quick answer: 2026 FSA and HSA deadlines and limits

Item	2026 rule or figure	Source
Health FSA contribution limit	$3,400 per employee	IRS, IR-2025-103
Health FSA carryover cap (plan years beginning in 2026)	$680	IRS, IR-2025-103
Health FSA grace period (if offered)	Up to 2.5 months after the plan year ends (March 15, 2027 for a calendar-year plan)	IRS Publication 969
Dependent care FSA limit	$7,500 per household ($3,750 married filing separately)	IRS (One Big Beautiful Bill Act change)
HSA contribution limit	$4,400 self-only / $8,750 family	IRS, Rev. Proc. 2025-19
HSA catch-up (age 55+)	$1,000	Set by statute
HDHP minimum deductible	$1,700 self-only / $3,400 family	Rev. Proc. 2025-19
HDHP out-of-pocket maximum	$8,500 self-only / $17,000 family	Rev. Proc. 2025-19
Last day for 2026 HSA contributions	Your 2026 tax return due date, not counting extensions (normally April 15, 2027)	IRS Publication 969

The FSA figures come straight from the IRS’s 2026 inflation adjustment release, which states the health FSA limit “increases to $3,400” and that the maximum carryover “is $680.”

How the FSA “use-it-or-lose-it” rule works

A health flexible spending account lets you set aside pre-tax pay for medical costs. The catch is in the IRS’s own words: “FSAs are generally ‘use-it-or-lose-it’ plans.” Money you elect for the plan year has to be spent on eligible expenses incurred during that year, or it is forfeited back to the employer.

The law gives employers two ways to soften that rule. Each employer picks one, or neither:

Option 1: Grace period

The plan can give you up to two and a half extra months after the plan year ends to incur new expenses and pay them from last year’s balance. For a calendar-year plan, that means purchases made through March 15, 2027 can draw on leftover 2026 money. There is no dollar cap on how much you can use during the grace period, only a time limit.

Option 2: Carryover

The plan can let you roll a limited amount into the next plan year. For a plan year that begins in 2026, the IRS cap is $680, so up to $680 of unspent 2026 money can be used in 2027. Your employer may set a lower amount. Anything above the cap is forfeited.

The rule people miss

Publication 969 is explicit: “A plan adopting a carryover provision is not permitted to also provide a grace period with respect to health FSAs.” So if a coworker at another company says they get until March and you assume you do too, check first. Your summary plan description or benefits portal will say which feature, if any, your plan uses.

Grace period vs. carryover at a glance

Feature	Grace period	Carryover	Neither
Extra time to spend	Up to 2.5 months (to March 15 for calendar plans)	The full next plan year	None; Dec. 31 is final
Dollar limit on leftover money	No cap, only time	Up to $680 from 2026 (lower if plan sets it)	All unspent money forfeited
Affects HSA eligibility next year?	Can, unless balance is $0 or plan limits it	Can, depending on plan design	No
Best for	People who can shop early in the new year	People with small, steady leftovers	Spend everything by Dec. 31

Don’t confuse the run-out period

Many plans also have a run-out period, a window after the plan year (often a few months, set by your plan) to submit claims for expenses you already incurred. It does not let you buy anything new. If you had a dental filling on December 10, the run-out period is your time to send the receipt, not a reason to delay the appointment.

HSA year-end rules: what actually has a deadline

A health savings account works differently. The money is yours, it stays in the account when you change jobs, and, per the IRS, “amounts that remain at the end of the year are generally carried over to the next year.” There is no year-end spending deadline. The dates that matter are about contributions and eligibility.

Contribution deadline

You can contribute for 2026 until the due date of your 2026 tax return, not including extensions, which is normally April 15, 2027. Payroll contributions usually stop at the last paycheck of the year, so if you want to top up for 2026 after January 1, make a direct contribution and tell your HSA provider it is for the prior year.

The last-month rule

If you become HSA-eligible late in the year and are eligible on December 1, the last-month rule lets you contribute as if you were eligible all year. The trade-off is a testing period: you must stay eligible through December 31 of the following year. If you don’t (for reasons other than death or disability), the extra contributions become taxable income plus a 10% additional tax.

Medicare and other coverage

Enrolling in Medicare ends your ability to contribute, though you can keep spending the balance. A general-purpose health FSA, including one in a grace period with money left in it, can also make you ineligible to contribute, which is why some employers convert leftover FSA money to a limited-purpose (dental and vision) FSA for HSA users.

Watch excess contributions

If you change jobs mid-year, add up what both employers and you contributed. Contributions over the annual limit face a 6% excise tax for each year they stay in the account unless you withdraw the excess (and its earnings) by the tax deadline. Your HSA provider has a form for this.

What changed for HSAs in 2026

The 2025 tax law known as the One Big Beautiful Bill Act widened HSA eligibility. The IRS explained the details in Notice 2026-5:

• Bronze and catastrophic marketplace plans are now treated as HSA-compatible high-deductible plans, even if they would not otherwise meet the usual HDHP definition.
• Telehealth coverage before the deductible no longer breaks HSA eligibility, made permanent for plan years beginning after December 31, 2024.
• Direct primary care memberships no longer disqualify you if fees stay within $150 a month for one person or $300 for arrangements covering more than one person, and HSA funds can pay those fees from 2026.

If you bought a bronze plan on HealthCare.gov or a state exchange for 2026 and never opened an HSA, you may still be able to contribute for 2026 up to the April 2027 deadline. Check your eligibility month by month with your provider or a tax professional before you do.

Eligible expenses: what you can buy before December 31

Both FSAs and HSAs cover “qualified medical expenses,” broadly the costs that would count for the medical expense deduction. An FSA only covers what your plan document includes, so check your plan’s list. Since 2020, over-the-counter medicines no longer need a prescription, and the IRS confirms that “menstrual care products are considered medical care.”

Category	Generally eligible	Generally not eligible (without a medical need)
Doctor and hospital	Copays, deductibles, coinsurance, lab work, urgent care	Insurance premiums (with limited HSA exceptions)
Pharmacy	Prescriptions, OTC pain relievers, allergy and cold medicine, antacids	General vitamins and supplements
Personal care	Menstrual pads and tampons, contact lens solution, bandages, first-aid kits	Toothpaste, shampoo, cosmetics
Vision	Eye exams, prescription glasses, contacts, reading glasses	Non-prescription sunglasses
Dental	Cleanings, fillings, crowns, orthodontics	Teeth whitening
Devices	Blood pressure monitors, thermometers, hearing aids, crutches, CPAP supplies	General fitness trackers
Care and therapy	Physical therapy, chiropractic care, mental health therapy, acupuncture	Gym memberships, unless prescribed to treat a specific condition

Some items in the gray zone need a letter of medical necessity from your doctor. Weight-loss programs for a diagnosed condition are the usual example. When in doubt, ask the plan before you buy.

A year-end FSA spend-down checklist

If your plan has no grace period, use the next nine weeks well. Work through this in order:

1. Log in and find your exact balance. Subtract any claims still pending so you know the real number.
2. Find your plan’s rule. Grace period, carryover (and the amount), or neither. Note the run-out deadline for claims.
3. Book appointments now. Eye exams, dental cleanings and physicals fill up in December. A November booking avoids the rush.
4. Replace glasses or stock up on contacts. A year’s supply of lenses can absorb a large balance in one purchase.
5. Refill the medicine cabinet. Pain relievers, allergy medicine, sunscreen your plan allows, first-aid supplies and menstrual products are all practical buys.
6. Buy useful devices. A blood pressure monitor or thermometer is a better use of $60 than letting it go back to the employer.
7. Keep every receipt. Even with an FSA debit card, the administrator can ask for itemized proof.
8. Submit manual claims before the run-out deadline. Set a reminder for mid-January.

Worked example (illustrative): Dana elected $2,000 for her 2026 health FSA and has $910 left on November 1. Her plan offers the $680 carryover. If she spends nothing more, $680 rolls into 2027 and $230 is lost. Booking an eye exam ($120) and ordering prescription glasses ($250) before December 31 brings her balance to $540, all of which carries over. A $230 loss becomes $0, and she still has money for next year.

Open enrollment: setting your 2027 election

Many employers run open enrollment in November, which is the best time to fix last year’s mistakes.

• Base your FSA election on known costs. Add up predictable expenses: prescriptions, planned dental work, glasses and regular copays. Elect that, not a hopeful round number.
• Note that the 2027 health FSA limit is not set yet. The IRS usually announces it in its annual inflation release in October or November. Until then, websites quoting a 2027 FSA figure are estimating.
• Use the 2027 HSA limits. The IRS set them in May 2026: $4,500 self-only and $9,000 family, with the $1,000 catch-up unchanged.
• Revisit dependent care. If you pay for daycare or after-school care, the higher $7,500 household limit may be worth using, but check whether your employer raised its plan cap, because employers are not required to.

Frequently Asked Questions

When does my FSA money expire in 2026?

For most calendar-year plans, the last day to incur expenses is December 31, 2026. If your plan has a grace period, you may have until March 15, 2027. If it has a carryover instead, up to $680 (or your plan’s lower limit) moves into 2027 and the rest is forfeited.

Can my plan have both a grace period and a carryover?

No. IRS rules let a health FSA offer one or the other, or neither. Check your summary plan description to see which applies to you.

Does HSA money expire at the end of the year?

No. HSA balances carry over indefinitely, and the account stays yours if you change jobs or retire. The year-end deadline that matters is for contributions: you can add 2026 money until your tax filing deadline, normally April 15, 2027.

What is the HSA limit for 2026?

$4,400 for self-only coverage and $8,750 for family coverage, plus a $1,000 catch-up contribution if you are 55 or older. For 2027, the limits rise to $4,500 and $9,000.

What happens to my FSA if I leave my job?

Typically, you can only claim expenses incurred while you were covered, and any balance is forfeited unless you elect COBRA continuation for the FSA. Rules vary, so ask HR before your last day, and consider using the balance before you leave.

What is the FSA limit for 2027?

As of October 22, 2026, the IRS had not announced the 2027 health FSA limit. It is normally published in the IRS’s annual inflation adjustment release in the fall. Until then, plan with the 2026 figure of $3,400.

Spend smart before the calendar flips

The difference between losing a few hundred dollars and keeping every cent usually comes down to one 15-minute check: your balance, your plan’s grace period or carryover rule, and your claims deadline. Do it this week, book any appointments while there are openings, and set your 2027 election from real numbers. For the official definitions, the IRS’s Publication 969 is the reference your plan administrator uses too. This article is general information, not tax advice; for your situation, ask your benefits administrator or a tax professional.