Millions of American workers are staring down a deadline they forgot existed, and it could cost them hundreds or even thousands of dollars.
It's the flexible spending account grace period, and if you miss it, that money doesn't roll into your bank account.
Flexible spending accounts let you set aside pre-tax dollars for medical or dependent care costs.
The trade-off is the "use it or lose it" rule.
Unlike a 401(k) or an HSA, an FSA generally doesn't follow you from year to year.
Not every employer runs the same calendar.
Some plans require you to incur expenses by December 31.
Others offer a grace period, usually up to 2.5 months into the new year, so you can spend last year's balance through mid-March.
A third option is a carryover, which lets a limited amount roll forward.
The catch: your employer picks which rule applies, and many workers never read the fine print.
The deadlines vary by company, so the only reliable answer is your own plan documents or benefits portal.
If you don't know your plan's specific cutoff, that's the first thing to check.
If you've got a balance sitting there, eligible expenses include things you may already be paying for: prescription copays, eyeglasses and contacts, dental work, therapy, bandages, thermometers, and even some over-the-counter medicines.
Many plans now cover menstrual products and COVID tests too.
Dependent care FSAs are a different beast.
That money is for daycare, before and after-school care, and summer day camp for kids under 13.
It's often the largest balance people leave on the table, because the spending rules are stricter and the deadline is unforgiving.
A few practical moves before time runs out.
First, log into your benefits account and find your exact deadline and remaining balance.
Second, schedule any medical, dental, or vision appointments you've been putting off.
Third, stock up on eligible items through your plan's online store, which often flags what qualifies so you don't guess.
One caution: don't buy random stuff just to burn the balance.
Ineligible purchases can get rejected, and you may end up reimbursing the plan.
If you consistently forfeit money, consider lowering your election.
If you consistently run out, you may be under-funding.
Set a calendar reminder for late fall, not January.
By the time the new year arrives, many people have already missed the window or are scrambling.
The takeaway: this is real money that came out of your paycheck, and it deserves a five-minute check.
Find your deadline, know your balance, and spend it on care you already need.
Employers aren't required to remind you, and they generally won't.
Final Thoughts
The deadline doesn't care whether you were busy.