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Photo: Vitalii Vodolazskyi (Shutterstock) Your workplace flexible spending account (FSA) might no longer be strictly “use it or lose it”—the latest relief bill allows you to roll over funds. In other words, if you missed out on spending down your FSA in 2020, you might be able to use those funds in 2021. Here’s what you need to know. Changes to your FSA Many workers have FSAs through their employer, which allows them to use pre-tax dollars to pay for unreimbursed health-related or dependent-care expenses such as glasses, over-the-counter drugs, or trips to the dentist (for more on qualified expenses as of 2021, read this Lifehacker post ). The drawback with FSAs (unlike HSAs) is that they’re “use it or lose it” accounts —the money you’ve deposited has to be spent by the end of the company’s fiscal year—with two exceptions, as some employers permit one of two options: Up to $550 of the fund can be carried over into next year to pay for the previous year’s claims. A 2.5 month grace period into the new year, in which to pay for the previous year’s claims. Under the Taxpayer Certainty and Disaster Tax Relief Act of 2020, however, these rules have changed (rules which also apply to Dependent Care FSAs, which are similar plans that benefit an employee’s dependents). Per the legal news site, JD Supra , FSA holders can take advantage of these changes: Extended carry-over and grace periods for 2021 and 2022. Any balance up to […]