- You typically get only one of the three options—rollover, grace period, or extended run-out. Knowing which applies changes your strategy.
- Rollover lets you carry a capped amount but forbids new spending after the plan year ends.
- Grace periods allow new purchases for a short time, but any unspent cash beyond that date disappears.
- Run-out windows do not allow new purchases; they simply extend the time to submit receipts.
Decode the three safety valves
Plan documents usually bury the definitions in a paragraph of legalese. Here is the human translation.
Grace period: extra time to spend leftover funds (usually up to 2.5 months). Purchases must still be medical, but they can happen after the plan year.
Rollover: unused funds—up to the IRS cap—move into the next plan year, but you cannot exceed the new year’s election limit when combined.
Run-out: an administrative window to submit receipts for purchases already made before the plan ended.
Figure out which rule your plan uses
Employer plans rarely stack these benefits. The quickest way to know what you have is to skim the Summary Plan Description (SPD).
Look for keywords: “rollover”, “carryover”, “grace period”, or “run-out.” The SPD will also mention specific dates or dollar caps.
If you see both a rollover amount and a grace period, confirm with HR—most administrators disable one to stay compliant.
- Navia plans often default to grace periods; Fidelity frequently uses rollover.
- If HR says “30-day run-out,” that means spend deadline already passed—focus on submitting documentation.
- Dependent Care FSAs follow similar logic but have different caps—double-check which account the rule references.
How to plan spending around your specific rule
Once you know the rule, your task list becomes obvious: buy now, submit now, or relax.
Grace period: front-load big-ticket medical purchases in January/February so you use leftover funds before they expire.
Rollover: estimate how much you expect to carry and reduce next year’s election accordingly.
Run-out: stop spending once the plan year ends and focus on gathering receipts before the submission deadline.
- Create a shortlist of eligible purchases (vision exam, dental work, medical devices) and schedule them within the allowed window.
- Track your balance monthly so you are not surprised in December.
- If you regularly rollover the max, consider lowering next year’s election to avoid locking cash.
Reminder
Employers can change the rule each plan year. Re-read the open enrollment packet even if you think nothing changed.
FSA Helper keeps every clock visible
Deadlines feel stressful when they live in PDFs. FSA Helper surfaces them next to your actual balance and claim queue.
Set your plan year start/end dates once and we calculate spending, grace, and run-out timers automatically.
If your plan offers rollover, we forecast how much will carry over based on current eligible spend.
- Dashboard badges shift color as you approach each deadline.
- Monthly digest emails recap how much is safe to rollover vs. how much needs to be spent.
- Claim generator reminds you to submit documentation before the run-out closes.
Next step
Stay ahead of every FSA deadline
Track balances, deadlines, and required paperwork in one dashboard so grace periods and run-outs never sneak up on you.
Plan with FSA Helper