If you have a Flexible Spending Account (FSA), knowing the deadline to submit claims is essential to avoid losing unused funds. FSAs are “use-it-or-lose-it” accounts, meaning any remaining balance may be forfeited if not used by the deadline.
In this guide, we’ll cover the last day to submit FSA claims for 2023, important deadlines, grace periods, carryovers, and tips to maximize your benefits.
What is an FSA?
A Flexible Spending Account (FSA) is a tax-advantaged account that allows employees to set aside pre-tax dollars for qualified medical expenses. These expenses include:
- Doctor visits and copays
- Prescription medications
- Dental and vision care
- Over-the-counter medicines
- Medical equipment
The main benefit of an FSA is tax savings, as contributions are deducted before income taxes, reducing taxable income. However, the “use-it-or-lose-it” rule makes it crucial to spend FSA funds before the deadline.
FSA Claim Submission Deadline for 2023
For most FSA plans, the last day to submit claims for 2023 is March 31, 2024. This deadline applies to expenses incurred between January 1, 2023, and December 31, 2023.
However, deadlines can vary based on employer policies. Some companies offer:
- A grace period allowing extra time to spend FSA funds.
- A carryover option that lets employees roll over unused funds up to a certain limit.
Understanding FSA Deadlines: Key Dates
1. Standard Deadline
- December 31, 2023 – Last day to incur expenses for most FSA plans.
- March 31, 2024 – Last day to submit claims for reimbursement.
2. Grace Period Extension
- Some employers provide a grace period until March 15, 2024.
- This means you can continue using leftover 2023 funds until this date.
- The claim submission deadline remains March 31, 2024.
3. Carryover Option
- Some FSA plans allow up to $610 (IRS limit for 2023) to be carried over into 2024.
- If your employer offers a carryover, funds beyond the limit will be forfeited.
Since not all employers offer grace periods or carryovers, check your plan details with your HR department.
How to Submit FSA Claims
To get reimbursed for eligible expenses, you need to submit a claim before the deadline. Follow these steps:
1. Gather Required Documents
- Receipts or invoices with dates and descriptions of services.
- Explanation of Benefits (EOB) from your insurance provider, if applicable.
- Prescriptions for over-the-counter medications, if required.
2. Submit Your Claim
- Log in to your FSA provider’s online portal.
- Upload supporting documents and enter claim details.
- Submit your claim before the March 31, 2024 deadline.
3. Monitor Your Reimbursement
- Check the status of your claim through your FSA portal.
- If denied, correct errors and resubmit before the deadline.
Tips to Avoid Losing FSA Funds
1. Check Your FSA Balance Regularly
Log in to your FSA account and review your remaining balance to plan expenses before the deadline.
2. Use Funds on Eligible Expenses
If you have extra funds, consider spending them on:
- Eyeglasses or contact lenses
- Dental cleanings or orthodontic work
- Physical therapy or chiropractic care
- First-aid kits or pain relievers
3. Confirm Your Employer’s FSA Policy
Some employers offer grace periods or carryovers, while others do not. Speak with HR to understand your options.
4. Plan for Next Year’s Contributions
- If you had leftover funds, consider contributing less next year.
- If you ran out of funds early, you may want to increase contributions.
What Happens If You Miss the Deadline?
If you don’t submit claims by March 31, 2024, unused FSA funds may be forfeited. Exceptions apply only if your employer offers a grace period or carryover.
To avoid losing money:
✔️ Check your balance well before the deadline.
✔️ Spend on eligible expenses before December 31, 2023.
✔️ Submit claims as soon as possible.
The last day to submit FSA claims for 2023 is March 31, 2024, but deadlines can vary depending on your employer’s policy. Some offer grace periods until March 15, 2024, while others allow carryovers up to $610.
To avoid losing unused funds, monitor your balance, use eligible expenses wisely, and submit claims early. By planning ahead, you can maximize your FSA benefits and avoid unnecessary forfeitures.