If you set aside money in a flexible spending account this year, that balance is now on a clock.
Most FSA funds have to be spent by December 31, and anything left over typically goes back to your employer.
Unlike a 401(k) or an HSA, an FSA is use-it-or-lose-it by design.
The average household contributes somewhere between $1,500 and $2,000 to a healthcare FSA each year, according to industry surveys.
That's real money sitting in an account that won't roll over into next year like a savings balance would.
For families juggling holiday bills, it's easy to forget the account even exists.
Here's where people get tripped up: a few employers offer a grace period, usually until March 15, or a carryover of up to $640 for 2024 plan years.
But you can't assume your plan has either one.
The rules are set by your employer, not the IRS, so two coworkers at different companies can have completely different deadlines.
The fix is simpler than most people think.
Vision and dental count, and so do things you'd buy anyway.
Contact lens solution, prescription sunglasses, bandages, thermometers, blood pressure monitors, and even some sunscreen and acne treatments qualify.
Many stores mark FSA-eligible items right on the shelf tag, and apps like FSA Store or Amazon's FSA section let you filter by eligibility.
You can also book appointments you've been putting off.
A dental cleaning, an eye exam, or a physical with a specialist all count if they happen before your deadline.
Just remember that the service has to be performed by the cutoff, not merely scheduled.
One warning worth repeating: don't panic-buy random medical gadgets just to burn the balance.
If the item isn't on your plan's eligible list, the claim gets denied and you're stuck with a receipt and no reimbursement.
Check your plan's rules before you check out.
If you do have money left and a deadline is closing in, log into your FSA portal today and look up three things: your exact deadline or grace period, your carryover amount if any, and the receipt deadline for submitting claims.
Some plans let you file claims into early next year for expenses from this year, but the purchase date still has to fall inside the plan window.
An FSA rewards people who plan and quietly punishes people who forget.
Final Thoughts
Spending twenty minutes reviewing your balance now beats writing off several hundred dollars in January.