If you have a flexible spending account through work, there's a decent chance you're sitting on money that quietly expires soon.
Unlike a savings account, an FSA comes with a use-it-or-lose-it rule that most people don't think about until December.
For 2024, the IRS let workers stash up to $3,200 in a health care FSA, plus up to $5,000 in a dependent care FSA if you're married filing jointly.
That money comes out of your paycheck before taxes, which is the whole appeal.
But whatever you don't spend by the plan's deadline typically goes back to your employer.
Not every plan runs on the calendar year, so your deadline depends on your employer.
Many follow a December 31 cutoff, while others offer a grace period that pushes spending into mid-March.
Some plans allow a small carryover — for 2024 balances rolling into 2025, that's $640 — but it's not automatic.
You have to check your plan documents, not assume.
The tricky part is that FSA dollars only cover specific things.
Doctor visits, prescriptions, glasses, contacts, dental work, and many over-the-counter items qualify.
So do things people forget about: bandages, sunscreen with SPF, pregnancy tests, breast pumps, and even some thermometers.
A quick stop at a drugstore can wipe out a leftover balance faster than you'd expect.
Dependent care FSAs are a different beast.
That money covers daycare, after-school programs, summer day camp, and babysitting so you can work.
It does not cover overnight camp or tutoring.
If you've got a balance there, talk to your provider about paying upcoming care bills early or prepaying a known expense.
Log into your FSA portal and check your exact balance and deadline — don't trust memory.
Then list expenses you already paid this year but never submitted.
Reimbursement claims often can be filed after the deadline, as long as the service happened before it.
Finally, if you're short on qualifying purchases, book that eye exam or dental cleaning you've been putting off.
Don't rush into panic-buying random items just to zero out the account.
Buying stuff you won't use wastes the same money you were trying to save, minus the tax break.
A better approach: if you consistently leave a balance behind, lower your contribution next open enrollment.
The tax savings only help if you actually spend the funds.
One more thing people miss — some cards and portals let you shop eligible items online with the FSA card directly, which beats paying out of pocket and filing paperwork later.
Check whether your plan offers that before you start collecting receipts.
The FSA deadline is one of those quiet money traps that rewards a five-minute check and punishes procrastination.
Set a reminder, log in, and look at the number.
Final Thoughts
If there's a balance sitting there, you've got a short window to turn it into something useful instead of a donation to your employer's bottom line.