If you set aside money in a healthcare flexible spending account this year, there's a good chance a chunk of it is still sitting there — and it won't wait for you.
These accounts let workers stash pre-tax dollars for medical costs, but they come with a use-it-or-lose-it rule that catches millions of people off guard every single year.
The deadline for spending your 2024 balance typically lands on December 31, though some employers push it to March 15 of the following year.
That grace period isn't guaranteed, so the only way to know your real cutoff is to check your plan documents or call your benefits administrator.
Miss it, and the leftover money goes back to your employer — not to you.
The average FSA contribution runs north of $1,500, and surveys have found that a large share of account holders forfeit at least some of it.
Even $200 down the drain stings more this year, with grocery bills and rent eating into paychecks that already feel stretched thin.
So what actually counts as an eligible expense?
Prescription glasses, contact lenses, dental cleanings, copays, bandages, sunscreen with SPF, menstrual products, and a long list of over-the-counter medicines all qualify.
You can also stock up on things you'll use eventually, like first-aid supplies or an extra pair of prescription sunglasses.
One of the easiest ways to burn a balance fast is to schedule appointments you've been putting off.
A dental exam, an eye checkup, or a visit to a specialist can absorb hundreds of dollars in one trip.
If you need new glasses or contacts, ordering before the deadline is a classic move for a reason.
You can also load up on eligible items at stores like CVS, Walgreens, or Walmart, or through online FSA storefronts that label every product.
Keep your receipts, because some purchases require documentation when you file a claim.
And if you have a dependent care FSA, that's a separate pot with its own rules — check whether it follows the same calendar.
If you're nowhere near spending the balance and the clock is almost out, some employers offer a carryover of a limited amount into next year, but many don't.
You can't cash out, you can't transfer it to a friend, and you can't roll it into a retirement account.
It's use it or lose it, plain and simple.
Estimate your true yearly medical spending before you elect a contribution, and lean conservative if you're unsure.
A slightly smaller paycheck deduction beats watching hundreds of dollars evaporate because you forgot a deadline.
Our take: this is one of the few money deadlines where procrastination has a real, measurable cost.
Set a phone reminder for early December, log into your account, and look at the balance today.
Final Thoughts
Fifteen minutes of planning can save you hundreds.