It depends on the type of Dependent Care FSA (DCFSA) program your employer has in place. There are three scenarios for unused money in your account at the end of the plan year:
- If you have a DCFSA with a grace period, you have up to 2.5 months after the end of the plan year to use unused money on expenses incurred in the new plan year before you lose them.
- If you have a DCFSA with a run-out period, you have up to 90 days after the end of the plan year to file claims for expenses incurred during the previous plan year and get reimbursed with that previous plan year's unused money.
- If you have a standard DCFSA, you lose any unused money at the end of the plan year.
The IRS does not allow for DCFSAs to have a carryover.
For more information about your DCFSA run-out period or grace period, navigate to the Benefits page > Dependent-care FSA.