Unused FSA funds beyond any employer-allowed carryover are generally forfeited at year-end — this quantifies exactly how much is at risk.
How it works
Expected spending plus the carryover allowance is subtracted from the contribution; whatever remains (floored at zero) is the amount at risk of forfeiture.
What this does not include
This site’s separate FSA calculator computes the tax savings from contributing in the first place — this calculator addresses the “use it or lose it” risk that calculator’s own documentation flags, not the tax benefit itself.
How to use this calculator
- Enter the annual contribution, expected eligible spending, and the employer’s carryover allowance.
Frequently asked questions
What is the FSA carryover?
An optional employer feature allowing a limited amount of unused FSA funds to roll into the next plan year rather than being forfeited — the IRS sets the maximum carryover amount, but not every employer offers it.
What’s the alternative to a carryover?
Some employers instead offer a grace period (typically up to 2.5 months into the new plan year) to spend down remaining funds, rather than a dollar-capped carryover — a plan can offer one or the other, not both.
How can forfeiture risk be minimized?
Estimating annual eligible expenses carefully before electing a contribution amount, and tracking spending throughout the year to make any last-minute eligible purchases before the deadline.
