There's a pile of cash sitting in an account with your name on it, and if you don't act, it simply vanishes.
Roughly $4 billion in flexible spending account funds gets forfeited every year, according to industry estimates, because workers forget the one rule that governs these accounts: use it or lose it.
If your employer runs a calendar-year FSA, your deadline is almost certainly December 31.
Miss it, and that money doesn't roll into your bank account or your 401(k).
Employees can stash up to $3,200 in a health care FSA for 2024, and many workers set aside $1,500 to $2,500 to cover deductibles, copays, prescriptions, and glasses.
A 2023 Employee Benefit Research Institute survey found that a chunk of account holders forfeit funds annually, often because they didn't realize a deadline was approaching until it passed.
Here's the confusing part: not every plan runs on the calendar year.
Some employers use a mid-year plan year, which means your deadline could land in June or September.
Others offer a grace period of up to 2.5 months, letting you spend 2024 funds until March 15, 2025.
A smaller group allows you to carry over up to $640 into the next year.
Your plan might offer one of these, both, or neither.
The only way to know is to check your benefits portal or call your HR department.
Once you know your real deadline, the spending sprint begins.
Eligible expenses go far beyond doctor visits.
Think prescription sunglasses, contact lenses, bandages, thermometers, blood pressure monitors, acne treatments, sunscreen with SPF 15 or higher, and even some over-the-counter medicines if your plan allows them without a prescription.
You can also book services now and pay later.
Schedule that dental cleaning, eye exam, or therapy session before December 31 and you've locked in the expense.
Many retailers like Amazon, Walgreens, and CVS run FSA-eligible storefronts that flag qualifying products, which makes hunting easier.
One warning: don't panic-buy random items just to drain the balance.
The IRS publishes a full list of eligible expenses, and your plan administrator has the final say.
Buying something that doesn't qualify means you'll repay the money and possibly owe taxes on it.
If your balance is large and your deadline is close, consider a few high-value moves.
Stock up on contact lenses for the year, replace prescription glasses, get that crown or filling done, or prepay for next year's therapy sessions if your provider allows it.
Dependent care FSAs work differently and cover things like daycare and after-school programs, with their own separate deadline.
Open your benefits app, find your balance, and put the deadline where you'll see it.
Workers who treat this like a bill due date rarely lose money.
Everyone else finds out in January that their account is empty.
Final Thoughts
The frustrating truth is that FSAs punish procrastination more than almost any other benefit.