If you have a flexible spending account through work, there's a decent chance you're sitting on a few hundred dollars that will evaporate if you don't act soon.
Most FSA plans follow a calendar-year schedule, which means the money you set aside in January has to be spent by December 31 — or you forfeit it.
Unlike a 401(k) or an HSA, an FSA is a use-it-or-lose-it account, and employers get to keep whatever you leave behind.
The good news is that many plans offer a grace period or carryover option that buys you extra time.
Federal rules allow employers to give you either a 2.5-month grace period (pushing your deadline to March 15) or a carryover of up to $640 into the next plan year — but not both.
Your specific deadline depends entirely on what your employer chose, so dig out your benefits paperwork or log into your account portal before you assume you're out of time.
What counts as a qualified expense is broader than most people realize, and that's where the real opportunity sits.
Prescription glasses, contact lenses, and sunglasses with a prescription are covered.
So are dental cleanings, fillings, and orthodontia.
You can also stock up on bandages, first-aid kits, thermometers, blood pressure monitors, and even menstrual products, which became eligible in 2020.
One of the most overlooked moves is a dependent care FSA, which is a separate account for daycare, after-school programs, and summer day camp.
If you have kids and you're not using this, you may be leaving real tax savings on the table.
Check whether your employer offers it and whether you still have a balance to spend.
If your deadline is truly close, you don't have to guess whether something qualifies.
Retailers like Amazon, Walmart, and Walgreens run dedicated FSA eligibility sections, and many let you filter search results by "FSA eligible." Drugstore chains also print "FSA eligible" labels directly on shelf tags, which makes in-person shopping faster.
A few practical moves if you're racing the clock: book a dental or vision appointment now, even if it lands after the deadline, as long as the service is performed before it.
Order replacement glasses or contacts online — turnaround is often a few days.
And remember that over-the-counter medications no longer require a prescription, so cold medicine, allergy pills, and pain relievers are fair game.
The catch is that you usually can't reimburse expenses from a prior plan year once the deadline passes.
Submit your receipts through your plan's portal or app as you go rather than saving them for a year-end pile, because documentation requests can slow things down.
If you're unsure how much is left, most administrators show a real-time balance when you log in.
A quick note on the math: if you contributed the maximum and only spent half, you're effectively handing your employer a few hundred dollars for nothing.
Run the numbers on what you actually expect to spend next year before you sign up again — overfunding an FSA is one of the most common money mistakes people make during open enrollment. **Our take:** An FSA isn't free money, it's your money with strings attached, and the strings tighten every December.
Set a calendar reminder in October, not December, so you have time to book appointments and order supplies without scrambling.
Final Thoughts
A fifteen-minute review now beats losing several hundred dollars you already earned.