Many workers lose unused FSA money — but could still come out ahead. Here's how

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Health flexible spending accounts, or FSAs , are tax-advantaged accounts that let workers set aside pretax money to cover eligible health expenses. However, they're often use it or lose it, with unspent balances forfeited at the end of the plan year. About 4 in 10 workers with health FSAs forfeited unused money in 2024, according to an October report from the Employee Benefit Research Institute, a nonprofit research organization. Among those FSA account holders, the average forfeiture was $404, down from $436 in 2023. The research examined more than 3.3 million accounts representing $3.9 billion in contributions.