Millions of American workers are sitting on hundreds—sometimes thousands—of dollars that will vanish if they don't act soon.
Flexible spending accounts, those pre-tax medical and dependent care funds tucked inside your benefits portal, typically come with a use-it-or-lose-it rule.
And this year, the calendar is working against you.
Here's the squeeze: most FSA plans follow the calendar year, which means your 2024 balance has to be spent by December 31.
Some employers offer a grace period until March 15, and others allow a carryover of a limited amount into the next year.
But plenty of workers assume one of those safety nets exists when it doesn't.
If your plan has neither, unspent money goes back to your employer.
You don't get a refund, and you don't get a tax break on money you never used.
The IRS caps health FSA contributions at $3,200 for 2025, and dependent care FSAs top out at $5,000 per household.
If you elected the full amount and only spent half, that's real money evaporating—after you already took the tax deduction.
For families juggling daycare, copays, and prescription costs, the loss can sting for months.
So where can you actually spend it before the clock runs out?
Start with the obvious: prescription glasses, contact lenses, and sunglasses with a prescription.
Dental work counts, including cleanings, fillings, and even some orthodontia.
Over-the-counter medications are back on the eligible list thanks to recent legislation, so stock up on pain relievers, allergy pills, and cold medicine.
First-aid kits, bandages, heating pads, blood pressure monitors, and pregnancy tests all qualify too.
Sunscreen with SPF 15 or higher is eligible as a medical expense.
So are menstrual products, breast pumps, and lactation supplies.
If you have a dependent care FSA, you can use it for daycare, before- and after-school programs, summer day camp, and even a nanny—as long as the care lets you and your spouse work.
Just remember that dependent care funds can't be used for medical costs, and health FSA funds can't cover childcare.
Many stores like Walgreens, CVS, and Amazon let you filter searches by "FSA eligible," which speeds up the scramble.
But if you wait until the last week of December, you'll be competing with every other procrastinator for limited appointment slots at the eye doctor and dentist.
Book now, buy now, and submit receipts before the deadline—reimbursement requests often have their own cutoff, sometimes just a few days after the plan year ends.
One more trap: debit cards linked to your FSA don't automatically validate every purchase.
Some transactions require you to upload a receipt later, and if you miss that step, the charge can be reversed and the funds locked until you prove the expense was eligible.
Check your portal for "substantiation required" flags so a simple paperwork miss doesn't cost you the balance.
If you're nowhere near spending your full balance, contact your HR department today.
Ask specifically whether your plan offers a grace period, a carryover, or neither.
Knowing the answer changes your strategy entirely—and it might be the difference between a stocked medicine cabinet and a few hundred dollars quietly disappearing. **The bottom line:** an FSA is a great deal only if you use it.
Final Thoughts
Treat the deadline like a bill that's due, not a suggestion, because your employer isn't going to remind you twice.