when the year ends or the grace period expires any funds that remain in your fsa are lost thus you should carefully calibrate the amount of money you plan to put into your account and how you intend to spend it over the course of the year 
a different type of fsa a limited purpose flexible spending arrangement lpfsa refers to a savings plan that can be used with a health savings account hsa which isn t allowed for a standard fsa contributions are made using pretax earnings a limited purpose fsa is more restrictive because the arrangement is reserved for paying dental and vision expenses it is often used in conjunction with an high deductible health plan hdhp in which a hsa is used for medical expenses associated with the hdhp 13