If you have a flexible spending account through work, there's a decent chance you're sitting on money that will vanish if you don't act soon.
Unlike a savings account, an FSA doesn't roll over indefinitely.
Most plans follow a use-it-or-lose-it rule, which means unspent funds can go back to your employer once the plan year wraps up.
The exact deadline depends on your employer, and it's rarely as simple as December 31.
Many plans offer a grace period of up to two and a half months, pushing the cutoff into mid-March.
Others allow a carryover of a limited amount into the next year.
The catch is that you have to know which rules apply to your specific plan, and that information usually lives in your benefits portal or the fine print of your enrollment packet.
For 2024, the IRS caps FSA contributions at $3,200 per employee, with carryover limits set at $640 for plans that allow it.
If you set aside the full amount and only used a fraction, that's real money on the line.
Healthcare FSAs cover a wider range of items than most people realize, including prescription glasses, contact lenses, bandages, thermometers, and even certain over-the-counter medications without a prescription.
Dependent care FSAs have their own separate deadline and a much stricter set of rules.
These accounts help pay for daycare, after-school programs, and summer camps, but they cap out at $5,000 per household.
If you have a balance sitting there and your child's camp registration is coming up, that's a legitimate way to draw it down before time runs out.
One smart move is to check whether your plan has an online store or a preferred vendor where you can stock up on eligible items before the deadline.
Glasses, first-aid supplies, and pregnancy tests are common buys.
Some retailers even let you filter products by FSA eligibility, which takes the guesswork out of it.
If you're unsure about what qualifies, your plan administrator usually has a searchable list.
A five-minute phone call beats losing several hundred dollars because you assumed something wasn't covered.
The bigger lesson here is about how you set your contribution in the first place.
If you overshot this year, consider lowering your election next time and putting the difference somewhere more flexible.
If you undershot and paid out of pocket for care you could have covered, that's a sign to bump it up. **Our take:** An FSA deadline is one of the few financial dates that actually punishes procrastination, so treat it like a bill that's due.
Final Thoughts
Spend ten minutes checking your balance today, and if there's money left, schedule a vision exam or stock up on essentials before it disappears.