How much will a health care FSA save after unused funds?

Compare employee health FSA tax savings with eligible spending, actual plan carryover or grace-period reimbursement, and forfeited funds. Choose general-purpose coverage or a confirmed HSA-compatible dental/vision limited-purpose plan. The result separates current reimbursements, future carryover and losses rather than treating every elected dollar as a benefit.

The lower of this amount and the selected year's federal limit applies.

For limited-purpose plans, include dental/vision spending only.

A plan can allow less than the federal ceiling. Retained carryover is not cash in hand.

Enter zero if these benefits are not excluded for your state/local income tax.

Use your actual Social Security/Medicare savings across these dollars, accounting for the wage cap and additional Medicare thresholds. This is a rate assumption, not a payroll-tax computation.

health care FSA savings calculator

Quick answer

Health FSA savings equal the salary reduction's estimated tax savings minus expired funds. The actual plan's carryover or grace provision determines what is retained.

Also answers

  • FSA tax savings
  • limited purpose FSA HSA
  • FSA carryover forfeiture
  • FSA grace period

Good fit when

  • Choosing a workplace health FSA election
  • Checking dental/vision limited-purpose plans
  • Comparing spending with forfeiture risk

Have ready

  • Plan year, salary reduction and actual plan ceiling
  • General-purpose or confirmed limited-purpose coverage
  • Qualified plan-year and grace-period spending
  • Actual carryover provision and marginal savings rates

Result you get

Reimbursements, unused balance, retained carryover, forfeiture, tax savings and net savings after forfeiture.

HSA deduction calculator2027 published amounts and planning status

How this calculation works

  • Limit employee salary reductions to the smaller of the actual plan election ceiling and the federal ceiling: $3,300 in 2025 or $3,400 in 2026. Employer funds and prior-year carried balances are outside this current-election model.
  • Use exactly one unused-funds treatment. A carryover plan retains the smaller of unused funds, the entered plan carryover ceiling and the federal maximum ($660 in 2025; $680 in 2026). A grace-period plan reimburses only entered eligible spending inside the actual plan grace period.
  • Apply your federal, state/local and employee payroll marginal savings rates to the salary reduction. Subtract forfeiture from the estimated savings; show retained carryover separately because it is future reimbursement value, not an immediate cash refund.
  • Worked 2026 example: a $3,000 election, $2,200 of spending, a $680 actual carryover and entered rates of 22% federal plus 7.65% payroll produce $889.50 tax savings, $120 forfeiture and $769.50 net savings. These rates are assumptions, not a computed payroll schedule.

Common mistakes and caveats

  • General-purpose FSA coverage plus HSA contributions is blocked. A limited-purpose mode is supported only after confirming dental/vision-only HSA-compatible coverage and counting only those expenses. Other HSA requirements still need independent review.
  • Post-deductible plans, coverage conversions, employer contributions, prior carried funds, multiple employers and special reservist distributions are unsupported. An unused general-purpose balance can affect later HSA eligibility.
  • Do not count insurance premiums, expenses reimbursed by another plan, or an expense already used for a medical deduction. Payroll savings can be lower above the Social Security wage base or different near additional Medicare thresholds.
  • 2027 indexed federal amounts that have not been published use clearly labeled provisional 2026 baselines, not invented inflation forecasts.

FAQ

What is the employee health FSA limit for 2026?

The federal salary-reduction ceiling is $3,400 for a plan year beginning in 2026. Your employer can impose a smaller limit. This is an employee limit, not automatically a combined household limit, and is different from a dependent-care FSA.

Can an FSA offer both carryover and a grace period?

A health FSA cannot offer both for the same plan year. Select the actual plan provision. A grace period can be up to 2 1/2 months; a claims run-out period only extends the submission deadline for already incurred expenses and is not new spending time.

Why can net savings be negative?

Tax savings do not reimburse money that expires unused. If the forfeited employee funds exceed the tax reduction, the current election creates a net loss in this model. Retained carryover is not forfeited now, but must eventually be spent on qualifying expenses to realize its value.

Can a limited-purpose FSA coexist with an HSA?

An otherwise HSA-eligible person can use an HSA-compatible limited-purpose arrangement. This mode covers confirmed dental/vision-only reimbursement; it does not determine HDHP eligibility or validate other coverage. General-purpose coverage, including coverage through a spouse, is blocked when HSA contributions are entered.

Should I enter my entire marginal tax rate as payroll savings?

No. Federal income tax, state/local tax and employee payroll savings are separate inputs. Use the payroll savings actually applying to the elected dollars. Employer payroll savings are not personal savings, and an assumed 7.65% does not apply to every worker.

Does a carryover increase next year's contribution ceiling?

Allowed carried funds do not reduce the new salary-reduction ceiling, but this tool models the current election only. Do not add old balances or employer funds to the contribution field. Plan terms and continued participation can determine whether the retained amount remains available.

Last updated & sources

Last updated October 13, 2026.

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2026-2027 HSA Deduction Calculator2026-2027 Medical Expense Deduction CalculatorDependent Care FSA vs Care Credit Calculator 2026-2027

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