If you have a flexible spending account through work, there's a decent chance a few hundred dollars are sitting in it right now, quietly ticking toward expiration.
Use-it-or-lose-it rules mean any unspent balance can vanish after your plan's deadline — and for most employers, that clock runs out on December 31.
Workers typically elect anywhere from $500 to more than $3,000 per year, and forfeited funds are common enough that employers build them into budget forecasts.
Unlike an HSA, which travels with you and can be invested, an FSA is a single-plan-year account.
Miss the window and the money simply goes back to your employer.
The good news: there are two common safety nets.
Many plans offer a grace period of up to 2.5 months into the new year, letting you spend last year's balance through mid-March.
Others allow a carryover of a limited amount — for 2025, that cap is $660 — into the next plan year.
The catch is that your employer chooses whether to offer either one.
You have to check your own plan documents.
Then there's the deadline that trips up the most people: the run-out period.
That's the window for submitting receipts for expenses you already incurred, and it's separate from the spending deadline.
You might have until March 31 to file a claim for a January dentist visit — but only if the service itself was performed before your plan year ended.
Confusing the two is how people lose money they legitimately earned.
Start with the obvious recurring costs: prescription copays, contact lenses and solution, eyeglasses, insulin and diabetes supplies, and mental health visits.
Dental work counts too, which makes late December a popular time to finally schedule that crown or filling.
Less obvious but eligible: bandages, heating pads, pregnancy tests, breast pumps, sunscreen (SPF 15 or higher with a doctor's note in some cases), and certain fertility treatments.
Over-the-counter medicines became permanently eligible in 2020, no prescription required.
If you've been putting off a physical, a vision exam, or a therapy appointment, the FSA deadline is a legitimate reason to book it.
One warning worth repeating every year: do not buy random stuff hoping it qualifies.
The IRS list is specific, and a rejected claim after the deadline means the money is gone.
Most plans also require you to submit receipts even when you use the FSA debit card, so keep documentation.
If you're staring down a balance you can't realistically spend, check whether your plan lets you use it for dependent care expenses or whether you can adjust next year's election during open enrollment.
Reducing your contribution by even $500 next year is a quiet raise if you keep forfeiting the same amount annually.
The takeaway is simple: this is one of the few deadlines where being proactive has a measurable dollar value.
Log into your benefits portal today, find your exact dates, and tally what's left.
Final Thoughts
Then either spend it on care you actually need or adjust next year's election so you're not funding your employer's budget instead of your own.