[zzeeman]

The catch is that FSAs have a “use it or lose it” provision, so any unexpended balance at the end of the year is forfeited.

I've never had one of those FSA accounts but I had heard about the "use it or lose it" aspect. My question is, where does that forfeited $$$ go?

[Piers-the-Ploughman]

IIRC, unused moneys go back to the company

[Second Amendment First]

Unused FSA funds are retained by the employer. On the flip side, if an employee spends the entire amount in the first month of the year and then leaves the company, the employer is on the hook for the upaid contributions.