FSA Forfeitures on the Rise

When employees don’t use up their annual contributions to flexible spending accounts (FSAs)—even factoring in permitted grace periods or carryovers—the unused amounts are forfeited to the employer. A recent EBRI study found that about half of FSA employees forfeited funds to their employers in 2022 (about $440 on average). Younger workers were more likely to forfeit funds than older workers. For 2024, the maximum health FSA contribution is $3,200; the maximum dependent care FSA is $5,000. #IdeaoftheDay