By Qamar S, 15 years in US medical billing · Last reviewed October 31, 2026
Quick answer: you can roll over up to $680 of unused 2026 health FSA money into 2027, if your employer’s plan allows a rollover (carryover). For money left at the end of 2027, the limit is projected at about $700; the IRS hasn’t announced it yet. Dependent care FSAs can’t roll over.
For plan years that start in 2026, you can roll over (carry over) up to $680 of unused health FSA money into 2027, but only if your employer’s plan offers a carryover. Some plans offer a grace period instead (usually until March 15), and some offer neither, which means money left at the end of the year is lost.
Check your plan’s rule now, while there’s still time to spend down. Your FSA administrator’s website or your benefits guide will say “carryover”, “grace period” or neither. Your employer can also set a carryover limit lower than $680.
FSA limits: 2026 and 2027
| 2026 | 2027 | |
|---|---|---|
| Health FSA contribution limit | $3,400 | Not announced yet (projected about $3,500) |
| Carryover limit | $680 | Not announced yet (projected about $700) |
| Dependent care FSA | $7,500 per household | $7,500 per household |
The IRS usually announces the next year’s FSA limits in October or November. We’ll update this page when it does.
Carryover vs grace period
| Carryover | Grace period | |
|---|---|---|
| What it is | Unused money (up to the limit) rolls into next year | Extra time after the year ends to spend the leftover money |
| Typical amount or time | Up to $680 from 2026 into 2027 | About 2.5 months, often until March 15 |
| What’s lost | Anything above the carryover limit | Anything not spent by the end of the grace period |
| Can a plan offer both? | No, your employer picks one or neither | No |
Separately, most plans give you a run-out period of 60 to 90 days after the year ends to submit receipts for expenses you already had. That’s for filing claims, not for new spending.
How to avoid losing FSA money
- Find your balance and your plan’s rule in your FSA account online.
- Book appointments before December 31, such as dental cleanings, eye exams or physical therapy.
- Buy eligible items: glasses or contacts, prescription refills, first aid supplies, sunscreen, over-the-counter medicines and menstrual products are generally FSA-eligible.
- Submit receipts for anything you paid out of pocket this year, including copays and deductibles.
- Set next year’s amount carefully during your employer’s open enrollment. Base it on expenses you can predict.
HSA or FSA?
An HSA never expires and can be invested, but you need an HSA-eligible high-deductible plan. An FSA works with most employer plans but has use-it-or-lose-it rules. See HSA vs FSA for a full comparison.
From 15 years in billing: many people forget they can use FSA money for last year’s medical bills that are still unpaid, as long as the service date falls in the plan year. If you have an outstanding bill from a 2026 visit, paying it with FSA funds before the deadline is an easy way to use up a balance.
Frequently asked questions
How much FSA can I roll over into 2027?
Up to $680 from a 2026 plan year, if your employer’s plan offers a carryover. Your employer can set a lower limit or offer a grace period instead.
What happens to FSA money I don’t use?
If your plan has no carryover and no grace period, unused money is forfeited at the end of the plan year. Anything above the carryover limit is also lost.
Does dependent care FSA money carry over?
No. Dependent care FSAs don’t allow carryovers, though your plan may offer a grace period.
What is the FSA limit for 2027?
The IRS hasn’t announced it yet. Projections point to about $3,500 for contributions and about $700 for carryover. The 2026 limits are $3,400 and $680.
Sources: Newfront: 2026 health FSA limit $3,400 and $680 carryover · IRS Publication 969
This guide is educational and is not legal, financial or insurance advice. MedBillGuide is not connected to Medicare, CMS or any government agency, and we do not sell insurance. See our Disclaimer.