If you have a flexible spending account through your job, there is a decent chance you are sitting on money you will lose.
These accounts let you set aside pre-tax dollars for medical or dependent care costs, but they come with a use-it-or-lose-it rule that trips up millions of households every year.
The exact deadline depends on your employer's plan.
Many run on the calendar year, which means the money has to be spent by December 31.
Others follow a mid-year plan, and some offer a grace period of up to two and a half extra months.
A few let you carry over a limited amount into the next year.
The only way to know your real cutoff is to check your plan documents or call your benefits administrator.
Here is the part that surprises people: swiping your FSA card is not the same as spending the money in time.
The expense has to be incurred by your deadline, even if you pay the bill later.
So a doctor visit on January 2 does not count toward a December 31 cutoff, no matter when the charge hits your card.
The good news is there are plenty of everyday purchases that qualify.
Over-the-counter medicine, bandages, sunscreen, contact lens solution, and menstrual products are all eligible.
So are glasses, dental work, therapy sessions, and some medical equipment.
Many stores now label FSA-eligible items right on the shelf tag, which makes it easier to spot them.
If you are short on time, a few moves can help.
First, log into your FSA portal and check your balance.
Second, look at receipts you have already saved, because you may be able to submit past purchases you never reimbursed.
Third, book that eye exam or dental cleaning you have been putting off.
Fourth, stock up on eligible basics you will use anyway.
Dependent care accounts work a little differently.
That money is for daycare, after-school programs, and summer camp, and the deadline rules can vary by plan.
If you have both types of accounts, check each one separately.
One more thing worth knowing: if your employer offers a carryover, it is usually a few hundred dollars, not the whole balance.
And a grace period only applies if your plan specifically includes one.
Treat your FSA like a gift card with an expiration date, because that is basically what it is.
Final Thoughts
A twenty-minute check of your balance and your plan rules could easily save you several hundred dollars, and that is a better return than most of us get on anything else this month.