FSA February: A Decision Month for FSA Participants 

If you have a Flexible Spending Account (FSA), February is not a “wait and see” month … it’s a decision month. What you do (or don’t do) right now can determine whether you keep your hard-earned healthcare spending dollars or lose them. 

After the rush of the holidays and the start of the new year, many people forget about their FSA. But February sits right in the middle of several important deadlines. Understanding what’s happening now can help you avoid forfeiting money and make smarter choices for the rest of the year. 

Here’s a breakdown and checklist for “FSA February”: 

February: The Overlap Month 

For many FSA participants, February is when last year’s money and this year’s plan overlap. Depending on your employer’s plan, you may still be able to use leftover funds from the prior year thanks to a grace period or runout period. 

A grace period (if your plan offers one) typically lasts until March 15.  

During that time, you can incur new eligible expenses and pay them with last year’s FSA dollars. February is often your last full month to take advantage of this window.  

If your plan does not have a grace period, it may offer carryover instead.  

Carryovers let you roll a limited amount of unused money into the new plan year, but you cannot have both a carryover and a grace period.  

This is why February matters. The plan rules are different for everyone (depending on your employer), and assuming the wrong rule can cost you money. 

Why Decisions Matter Now 

Waiting until March can leave you scrambling. Appointment availability tightens, receipts get lost, and deadlines sneak up quickly. February gives you time to act calmly and intentionally. 

It’s also a good month to look ahead. Once prior year spending deadlines pass, you can only use your FSA contributions for the current year. Knowing where you stand now helps you plan healthcare spending for the rest of the year. 

The February FSA Decision Checklist 

Use this checklist to stay on track: 

✅ Check Your Plan Type 

• Does your FSA offer a grace period or a carryover? 

• Remember: plans can offer one or the other, not both. 

✅ Review Your Remaining Balance 

• Log in to your FSA portal and confirm how much money is left from last year. 

• Don’t rely on estimates. Use exact numbers. 

✅ Schedule Eligible Appointments 

• Dental cleanings, eye exams, new glasses, or therapy visits can often be scheduled in February and still count toward last year’s funds if you have a grace period. 

✅ Submit Old Receipts 

• If your plan has a runout period, February may be your last chance to submit claims for expenses that happened last year.

✅ Know What Counts as an Eligible Expense 

• Many over the counter (OTC) health items qualify, and recent IRS guidance expanded eligible preventive care items. 

• When in doubt, check your plan’s eligible expense list. 

✅ Avoid “Use It or Lose It” Surprises 

• Any money left after deadlines may be forfeited back to your employer. 

• February is your warning sign—not March. 

A Small Effort That Pays Off 

FSAs are designed to save you money, but only if you use them correctly. Spending 15–20 minutes in February reviewing your account, booking appointments, or submitting claims can save you hundreds of dollars. 

Think of February as your checkpoint. You don’t need to rush, but you do need to decide. 

If you take action now, March will be just another month, not a deadline panic. 

Captain Contributor is an award-winning employee education and engagement program sponsored by DataPath, Inc.