If you have a flexible spending account through work, there's a decent chance you're about to leave free money sitting on the table.
Most FSA plans run on a calendar year, which means the money you set aside in January needs to be spent by December 31.
Miss it, and the account balance typically goes straight to your employer.
Here's the part that trips people up: the deadline that matters isn't always the one you think.
Many plans give you a grace period until March 15, or let you carry over a limited amount into next year — but not both, and not automatically.
You have to know which rule your specific plan follows, and that information is buried in a benefits portal most people never log into.
The current carryover limit sits at $640 per year, and it only applies to funds left over from the prior plan year.
If you set aside $2,500 and only spent $1,200, that leftover $1,300 doesn't roll over in full — most of it disappears unless your plan offers the grace period instead.
Prescription glasses and contacts, sunscreen with SPF 15 or higher, bandages, pregnancy tests, thermometers, blood pressure monitors, and most over-the-counter medications if you have a prescription.
Some plans now cover menstrual products and breast pumps without a prescription thanks to recent rule changes.
The fastest way to burn down a balance is a bulk purchase at a store like CVS, Walgreens, or Amazon's FSA store, which only lists eligible items.
People commonly stock up on contact lens solution, first aid supplies, and allergy medicine in December.
Just confirm your card works at that retailer before you check out — some require you to submit receipts manually.
One more thing worth checking: your dependent care FSA runs on a separate deadline and separate rules, even if it's through the same employer.
That money covers day care, after-school programs, and summer camp, and it's notorious for getting forfeited because parents forget it exists.
If you're not sure where you stand, log into your benefits portal today and look for three numbers: your current balance, your plan's deadline, and whether it offers a grace period or carryover.
That five-minute check is the difference between reimbursing yourself and donating your own money to your company's bottom line.
The honest takeaway here is that FSAs reward people who plan and punish people who don't.
If your employer offers one, it's still usually worth using — the tax savings are real.
Final Thoughts
But treat the deadline like a bill you have to pay, not a suggestion, because nobody is going to remind you twice.