There's a deadline hiding in your benefits portal that most people never check until it's too late.
It's the last day you can spend the money you already set aside in your flexible spending account — and if you miss it, that cash doesn't roll into your savings.
If you signed up for a health care FSA during open enrollment, your employer deducted a set amount from each paycheck before taxes.
That money sits in an account you can use on copays, prescriptions, glasses, contact lenses, and a long list of other eligible expenses.
The catch: most plans require you to spend it by December 31, though some employers offer a grace period into mid-March or let you roll over a limited amount into the next year.
The rollover and grace period rules aren't universal.
The IRS lets employers choose whether to offer either one, and plenty of companies offer neither.
That means workers at those companies who don't submit claims by the plan's cutoff simply forfeit whatever is left.
A 2023 report from the Employee Benefit Research Institute found that workers collectively lose hundreds of millions of dollars in forfeited FSA funds each year — money that came out of their own paychecks.
The good news is that you don't need a medical emergency to use the balance.
Eligible purchases include over-the-counter medications, bandages, thermometers, menstrual products, breast pumps, sunscreen with SPF 15 or higher, and even some air purifiers if you have a letter of medical necessity.
You can also stock up on prescription refills, schedule that dental cleaning you've been putting off, or finally order the replacement glasses.
One strategy that catches people off guard: you can often use FSA funds at online retailers that specialize in eligible products, and many of them label items clearly so you don't have to guess.
Major drugstore chains also print FSA-eligible markers on receipts, which makes tracking easier.
If you're unsure whether something qualifies, check your plan's list or call the number on the back of your FSA card before you buy.
If you have a dependent care FSA, the rules are different and the deadline pressure is often tighter.
That account covers daycare, after-school programs, and summer day camp — but you can only be reimbursed for care you've already paid for.
If you've been meaning to submit those receipts, now is the time.
Missing the deadline there means losing money you spent months ago.
A few practical moves: log into your benefits portal today and find your exact deadline, check your balance, and if you have a grace period, mark it on your calendar.
If your employer offers a carryover, confirm the cap — it's typically a few hundred dollars, not the full balance.
And if you're stuck with a use-it-or-lose-it situation, book the appointments now, because December calendars fill up fast.
The bottom line is that an FSA only saves you money if you actually use it.
Treat the deadline like a bill you have to pay, because in a real sense, it is one.
Final Thoughts
Set a reminder, spend the balance on things you'll need anyway, and don't let your own paycheck quietly vanish into your employer's books.