The rollover limit depends on your plan, but most allow you to carry forward up to $610 into the next year
The amount you can roll over in a Flexible Spending Account (FSA) is set by your employer's plan document, not by federal law. Most plans allow you to carry forward up to $610 of unused money from one plan year to the next, though some allow less or none at all. The $610 figure is adjusted annually by the IRS — it was $570 in 2023 and $600 in 2024, so it changes based on inflation.
The key thing to understand is that your employer chooses whether to offer rollover at all. Some plans have a "use it or lose it" rule, meaning any money left over at the end of the year is forfeited. Others offer a grace period instead of a rollover — typically 2.5 months into the next year when you can still spend down your previous year's balance. A few plans offer both a grace period and a rollover. You need to check your plan documents or ask your benefits administrator which option your employer chose.
Key Takeaways
- Your employer's plan document determines whether you can roll over unused FSA money at all — federal law does not require it.
- If rollover is allowed, the maximum you can carry forward is $610 for 2025, adjusted annually by the IRS for inflation.
- Some plans offer a grace period (usually 2.5 months into the next year) instead of or in addition to rollover, letting you spend the old balance later.
- Money you roll over counts toward your new year's FSA contribution limit, so rolling over $610 reduces how much you can contribute fresh in the new year.
How the rollover interacts with your annual contribution limit
If your plan allows rollover and you carry forward $610, that $610 counts as part of your total FSA balance for the new year. Your annual FSA contribution limit for 2025 is $3,300 (this also adjusts yearly). If you roll over $610, you can only contribute an additional $2,690 from your paycheck in the new year — the rollover and new contributions together cannot exceed $3,300.
This matters because many people assume they get to keep the rollover money on top of their full new contribution. That is not how it works. The rollover reduces your available contribution room, not your total spending power. You still have access to the full $3,300 in the account; it just comes partly from last year and partly from new contributions.
Plans that use a grace period instead of rollover
A grace period is different from rollover. With a grace period, you do not carry money forward into the new plan year, but you get extra time to spend it. If your plan has a 2.5-month grace period, you can use your 2024 FSA balance to pay for may be able to access expenses incurred through February 28, 2025 (or March 31 in some cases). Claims must still be submitted within the plan's normal deadline, usually 60 to 90 days after the expense date.
A grace period is often more generous than rollover because you can spend the full amount without it reducing your new contribution room. However, you cannot carry the money past the grace period — anything unspent after the grace period ends is forfeited. Some employers offer both: a grace period and a rollover, which gives you the longest window to use old money.
What happens to money you do not roll over or spend
Any FSA balance you do not roll over and do not spend during the grace period (if your plan has one) is forfeited. This is the "use it or lose it" rule built into FSA law. The money goes back to your employer or the plan administrator — you cannot get it back as a refund or transfer it to another account.
This is why many people try to estimate their medical expenses carefully at the start of the year. If you overestimate and end up with unused money, you lose it. If you underestimate, you may run short and have to pay out of pocket. The rollover and grace period options exist to give you a small safety net, but they do not eliminate the risk of forfeiture entirely.
How to learn about your plan allows rollover
Your employer's benefits administrator or human resources department can tell you whether your specific plan allows rollover, how much, and whether a grace period is also offered. You can also check your Summary Plan Description (SPD), which is a document your employer is required to provide. The SPD lists all the rules of your FSA, including rollover and grace period policies.
If you cannot find the SPD or your HR department, check any benefits materials you received when you enrolled in the FSA. Many employers include a one-page summary of FSA rules with enrollment packets. If you still cannot find the answer, ask your benefits administrator directly — they deal with this question regularly and can give you a clear yes or no.
Strategies for avoiding forfeiture
If your plan does not allow rollover or grace period, you need to estimate conservatively. Look at your actual medical expenses from the past two to three years — copays, prescriptions, dental work, vision care, and any recurring treatments. Use the lower end of that range rather than the higher end, because overestimating costs you money.
If your plan does allow rollover, you can be slightly more generous with your estimate, knowing that up to $610 can carry forward. However, do not assume you will use the rollover money — many people still end up forfeiting it because they overestimate again in the new year. The safest approach is to estimate what you will actually spend and use rollover as a buffer, not as a way to contribute more than you need.
Changes to your FSA mid-year and rollover
If you have a may have access to life event — marriage, birth of a child, loss of coverage — you can change your FSA contribution mid-year. If you lower your contribution, any money you have already set aside stays in the account and can be rolled over (if your plan allows) or spent during a grace period. If you increase your contribution, the new money is added to your account.
Rollover rules do not change based on mid-year changes. The limit still applies to the total balance you carry forward, regardless of when you contributed it during the year. If you are unsure how a mid-year change affects your rollover, ask your benefits administrator before you make the change.
Frequently Asked Questions
Can I roll over more than $610 if my employer allows it?
No. The $610 limit for 2025 is set by federal law and applies to all FSA plans, regardless of what your employer's plan document says. Your employer cannot allow you to roll over more than that amount. Any balance above $610 is forfeited at the end of the year.
If I roll over $610, can I contribute the full $3,300 in the new year?
No. The $3,300 is your total FSA balance for the year, including rollover. If you roll over $610, you can contribute only $2,690 from your paycheck in the new year. The rollover counts toward your annual limit, not in addition to it.
What is the difference between rollover and a grace period?
Rollover carries money into the new plan year and counts toward your new contribution limit. A grace period lets you spend old money for a set time (usually 2.5 months) after the plan year ends, but the money does not carry into the new year. Some plans offer both.
If my plan does not allow rollover, can I transfer my FSA balance to an HSA?
No. FSA balances cannot be transferred to a Health Savings Account (HSA) or any other account. If your plan does not allow rollover or grace period, unused money is forfeited. This is one reason to estimate your expenses carefully when you enroll.
Do I have to use my rollover money before new contributions?
No. Your FSA account is one pool of money. When you submit a claim, the plan pays it from the total balance without regard to whether it came from rollover or new contributions. You do not need to spend the rollover first.