Key takeaways: A health FSA is often “use it or lose it,” while an HSA rolls over every year. The 2026 health FSA limit is $3,400. The 2026 HSA limits are $4,400 (self-only) and $8,750 (family), plus $1,000 if you are 55 or older. Check your own plan’s rules and balance now, because your employer’s plan decides whether you get a carryover or a grace period.
Every year around this time my inbox fills with the same question from friends: “Do I lose my FSA money?” Picture Marcus (an illustrative example), who put $1,200 into his health FSA in January and, in November, finds he has used only $700. He has $500 sitting there with weeks left. Whether he loses it depends on one thing: what his employer’s plan allows.
FSA vs HSA in plain English
| Health FSA | HSA | |
|---|---|---|
| Who sets the rules | Your employer’s plan | You own the account |
| 2026 limit | $3,400 | $4,400 self-only / $8,750 family (+$1,000 if 55+) |
| Leftover money | May expire; some plans allow a limited carryover or a grace period | Generally rolls over each year |
| Who qualifies | Employees whose employer offers it | People with a high-deductible health plan and no disqualifying other coverage |
Sources: IRS limits for 2026 (Rev. Proc. 2025-19 for HSAs, Rev. Proc. 2025-32 for the FSA), and IRS Publication 969.
What to do this week
- Log in and check your balance. Your plan administrator’s site or app shows it.
- Read your plan’s deadline. Some plans give a grace period after December 31; some allow a carryover (for 2026 the IRS maximum carryover is $680 for plans that offer it); some offer neither. Ask HR which applies to you.
- Spend on things you really need. Prescription copays, dental work you have been putting off, glasses or contacts, and eligible over-the-counter items are common uses. Do not buy things you will not use just to empty the account.
- Keep receipts. You may need to substantiate claims.
HSA owners: different rules
The IRS says amounts that remain in an HSA at the end of the year are generally carried over. For the prior year, contributions could be made through April 15 of the following year, so for 2026 you would expect April 15, 2027. Eligibility requires qualifying high-deductible coverage, and you generally cannot contribute if you are enrolled in Medicare.
Back to Marcus
Marcus called HR and learned his plan had a carryover. He still booked the dentist appointment he had delayed since spring, used about $300 of it, and carried the rest forward. The lesson: five minutes to read the plan beats guessing.
FAQ
Can I have an FSA and an HSA?
Usually not a general-purpose health FSA alongside an HSA. Rules have exceptions, so confirm with your plan documents.
What if I leave my job?
FSA access often ends with employment. Ask HR before your last day.
General information, not tax or financial advice. Marcus is an illustrative example. Confirm figures with the IRS and your plan administrator.
