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Some workers with health flexible spending accounts<\/a> may be on the verge of giving their employers an unintentional gift this holiday season.<\/p>\n Each year, the share of employees who miss the typical Dec. 31 deadline to spend their FSA money<\/a> and end up forfeiting it to their companies is between 40% and 50%, according to ongoing research from the Employee Benefit Research Institute<\/a>, which began tracking FSA data in 2019. Although some companies give account holders an extension, most \u2014 about two-thirds \u2014 employ a use-it-or-lose-it rule.<\/p>\n “People tell us one of the main reasons they forfeit FSA funds is because they aren’t aware that they have a deadline in the first place, or they don’t know how much they have left in their account,” said Rachel Rouleau, chief compliance officer for Health E-Commerce, parent company of FSA Store.<\/p>\n<\/div>\n The total U.S. health-care expenditure was $4.9 trillion in 2023<\/a>, according to the most recent data available from the Centers for Medicare & Medicaid Services. Out-of-pocket spending that year grew 7.2% to $505.7 billion.<\/p>\n As health-care costs<\/a> have risen over the years \u2014 at a rate outpacing overall inflation<\/a> \u2014 FSAs have grown in popularity as a way for workers to set aside pretax money to cover health expenses. Nearly three-quarters \u2014 72% \u2014 of state and local government workers and 47% of private-sector workers had access to a health FSA in 2024, according to the Bureau of Labor Statistics<\/a>. That compares with 60% and 40% in 2015, respectively. <\/p>\n The contribution limit for health FSAs this year is $3,300 and in 2026 will be $3,400.<\/p>\nDon’t confuse your FSA with an HSA<\/h2>\n