In October 2026, the Employee Benefit Research Institute reported continuing forfeitures from US flexible spending accounts. The research is dated 15 October, with a release on 21 October, and describes 2024 account experience rather than a 2026 projection.
Across 3.3 million accounts, roughly four in ten holders forfeited unused funds. The average forfeiture among those losing money was $404, down from $436. That figure is conditional: it is not the average loss for every participant.
Start with the plan calendar
Employers could use the findings to check whether employees understand their own account rules. IRS guidance describes health FSAs as generally use-it-or-lose-it arrangements; a plan may provide a grace period or a carryover. Those features should never be assumed to apply universally.
Communication should distinguish the deadline for incurring eligible expenses from the deadline for submitting claims. A checked example could explain the evidence needed, the submission route and where to seek help. Current contribution or carryover limits should be verified for the applicable year before publication.
Help employees retain value
Enrolment guidance could support an informed contribution election based on reasonably predictable needs. Later reminders could connect an actual balance to applicable deadlines and an eligibility-checking service. The objective should be legitimate reimbursement, without encouraging unnecessary purchases or automatically recommending maximum contributions.
Benefits committees could monitor forfeiture frequency, amounts and unresolved administrative issues using consistent definitions. They should investigate local causes before assuming that every unused balance results from poor communication.
For global benefits professionals, the transferable lesson is the importance of usable value. The US account structure remains jurisdiction-specific. EBRI’s historical findings support a review of guidance and administration; they do not prove that a particular campaign will prevent every loss. Any improvement should be assessed against the actual plan and a clearly defined comparison period.
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