Roughly 35 million Americans set money aside in a flexible spending account this year, and a quiet chunk of them are about to forfeit it.
Unlike a 401(k) or an HSA, an FSA is a use-it-or-lose-it account.
Miss the deadline, and whatever is left doesn't roll into your savings — it goes back to your employer.
The good news: most workers get more runway than they think.
If your plan follows the IRS "grace period" rule, you have until March 15 to spend last year's balance.
If it offers a carryover instead, you can roll up to $640 into 2025.
The catch is that your employer picks one option or the other — and some pick neither.
Check your benefits portal before you assume you're covered.
Eligible expenses go well beyond doctor visits.
Over-the-counter pain relievers, allergy medicine, bandages, pregnancy tests, and even some sunscreen qualify without a prescription, thanks to a rule Congress made permanent in 2020.
You can also use FSA dollars on glasses, contacts, dental cleanings, therapy, and menstrual products.
Even a new pair of prescription sunglasses counts.
One deadline hack is hiding in plain sight: many online FSA stores let you stock up now and submit receipts later, as long as the purchase date lands inside your window.
Blue Cross Blue Shield and other administrators also run eligible-item lists you can search by product name.
A single $60 order of eligible staples can drain a balance that would otherwise vanish.
If you're still sitting on a large amount — say $400 or more — consider scheduling that dental work, eye exam, or therapy session you've been putting off.
You have to receive the service, not just book it, before the cutoff.
For a bigger balance, a pair of prescription glasses or a dermatology visit can absorb several hundred dollars in one appointment.
One more thing worth knowing: dependent care FSAs run on a separate clock and a separate list of eligible costs, including day care, after-school programs, and summer camp.
Those deadlines often differ from medical FSA deadlines, so read both.
The average household leaves real money on the table here, and it rarely makes headlines because it disappears silently.
Set a phone reminder for two weeks before your plan's cutoff, log into your account, and look at the actual number.
Then treat it like a gift card that expires — because that's exactly what it is. **Our take:** FSAs reward people who plan and punish people who forget.
If your employer offers a carryover or grace period, use it as a buffer, not a crutch.
Final Thoughts
And if you consistently struggle to spend your balance, it may be worth lowering your election next open season rather than donating the difference back to your company.