Many workers lose unused FSA money — but could still come out ahead. Here’s how

Around 4 in 10 workers with health flexible spending accounts (FSAs) forfeited unused money in 2024, but they may still have saved overall through the accounts’ tax advantages. The key comparison is between the amount forfeited and the tax savings from paying eligible health costs with pretax income.

An Employee Benefit Research Institute report examined more than 3.3 million accounts, representing $3.9 billion in contributions. Among account holders who forfeited money, the average amount was $404, down from $436 in 2023. A researcher said participants can still come out ahead if their forfeiture is smaller than the tax savings they received.