There's a stash of cash with your name on it, and if you don't use it soon, it's gone.
Flexible spending accounts have a use-it-or-lose-it rule, and the clock is running out for millions of workers.
An FSA lets you set aside pre-tax dollars for medical and dependent care costs.
The trade-off is strict: money you don't spend by your plan's deadline typically vanishes.
Most employers align the deadline with the calendar year, which means December 31 is the cliff for a huge share of account holders.
Some plans offer a grace period of up to 2.5 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 your specific plan follows, and nobody is going to call you about it.
Where the money actually goes matters, because inflation has quietly raised the price of everything an FSA covers.
Copays, prescriptions, glasses, dental work, therapy, and daycare all cost more than they did a couple of years ago.
That's the strange upside here: your balance may stretch less than before, but the rising prices also make it easier to burn through the funds on things you genuinely need.
Prescription refills, contact lenses and solution, eyeglasses, hearing aids, bandages, and most over-the-counter medicines qualify.
So do copays for doctor visits, urgent care, and specialists.
If you've been putting off a dental cleaning or an eye exam, this is the moment to book it.
Many plans now cover menstrual products, breast pumps, sunscreen, and certain telehealth visits.
Some reimburse mileage for medical travel.
A few allow you to stock up on eligible items through retailer FSA stores, where the checkout filters out anything that doesn't qualify.
Dependent care FSAs are a separate bucket with their own rules, usually aimed at daycare, after-school programs, and summer camp.
Those funds often have a different deadline and a different carryover policy, so don't assume one balance covers the other.
The paperwork is where people lose money.
You typically need to submit claims and receipts by a filing deadline that lands weeks after the spending deadline.
Miss that window and the account closes anyway.
If you're sitting on a balance, submit receipts now rather than in a last-minute scramble.
One more thing worth checking: some employers let you change your contribution election mid-year only after a qualifying life event, like a marriage, birth, or job change.
If your expenses have shifted, that's your one opening to adjust.
The closing opinion: An FSA is a bet that you can predict your medical spending a year in advance, and most of us are bad at that.
If you consistently forfeit money, it may be worth lowering your contribution next enrollment season and treating the account as a tool rather than a savings vehicle.
Final Thoughts
Spend what's left, but don't buy things you'll never use just to beat a deadline.