Millions of American workers are sitting on hundreds of dollars they can only spend for a few more weeks.
Flexible spending accounts, the pre-tax accounts offered through many employers, often require you to use your balance by December 31 or forfeit it.
Unlike a bank account, that money doesn't roll over indefinitely, and your employer keeps whatever you leave behind.
The average employee elects around $1,500 to $2,000 a year into a healthcare FSA, according to benefits industry data.
If you've only spent part of it, the last few weeks of December are your window.
The catch is that you can't just withdraw the cash.
You have to spend it on eligible expenses, and the rules vary by plan.
Some employers offer a grace period, letting you spend leftover funds until March 15 of the following year.
Others allow a carryover of a limited amount, which the IRS set at $640 for 2025.
But plenty of plans offer neither, meaning December 31 is a hard wall.
Check your plan documents or call your benefits administrator before you assume you have extra time.
The easiest way to drain a balance is to stock up on items you'll use anyway.
Eligible purchases typically include over-the-counter medications, bandages, contact lens solution, sunscreen, feminine products, and first-aid supplies.
Many stores now label FSA-eligible items directly on the shelf or online, which takes the guesswork out of checkout.
If you wear glasses or contacts, this is the moment to use your vision benefit.
An extra pair of frames, prescription sunglasses, or a year's supply of contacts can absorb a large balance quickly.
Dental work counts too, so scheduling that cleaning, filling, or crown before the year ends can put the money to work.
Dependent care FSAs, which cover day care, after-school programs, and summer camp, follow similar use-it-or-lose-it rules.
If you've been paying for child care out of pocket, submitting those receipts now can recover pre-tax dollars you'd otherwise lose.
One warning: don't panic-buy things you don't need just to zero out the account.
Spending $200 on random products to save roughly $60 in taxes is a losing trade.
The goal is to redirect money toward expenses you were already going to have, not to manufacture new ones.
If you use an FSA debit card, the administrator can still ask for documentation later, and purchases made in late December sometimes get flagged for review.
Submitting proof promptly avoids a headache in January.
If you find yourself with a balance you can't spend in time, ask your HR department about your plan's specific deadline.
Some companies quietly offer extensions or carryovers that employees never bother to check.
It costs nothing to ask, and the answer could be worth several hundred dollars.
The smartest move is to look at your balance today, not on December 30.
Give yourself enough runway to book an appointment, place an order, or gather receipts before the clock runs out.
It's a frustrating system that punishes people for not spending fast enough, but until the rules change, the only way to win is to use every dollar before it vanishes.
Final Thoughts
Treat your FSA like a gift card with an expiration date, because that's exactly what it is.