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Workers with manually substantiated FSA claims less likely to forfeit funds, analysis finds

About half of flexible spending account holders fail to maximize their tax advantages by paying for qualified medical expenses by the end of the year.

By Alan Goforth | January 06, 2025 at 01:26 PM

About half of flexible spending account holders fail to maximize their tax advantages by paying for qualified medical expenses by the end of the year. As a result, they forfeited an average of $441, previous analyses of EBRI’s FSA database found.

Although some FSAs have a rollover feature in which up to $640 can be carried over from one year to the next, roughly one-third of the accounts in the database are use-it-or-lose-it, and any unspent funds by the end of the plan year are forfeited back to the employer.

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