There's a pot of money sitting in millions of American workplaces right now, and a chunk of it is about to evaporate.
It's your flexible spending account, or FSA, and the rules for spending what's left are stricter than most people realize.
Here's the core problem: an FSA is a "use it or lose it" account.
Unlike a health savings account, which rolls over year after year, an FSA generally requires you to spend the balance by December 31.
Miss that date and your employer keeps whatever's left.
For households that tucked away $1,000, $2,000, or more, that's real money slipping away.
There are two big exceptions, and they're not automatic.
Your employer can offer a grace period, usually up to 2.5 months into the next year, or a carryover, which lets you roll a limited amount forward.
But not every workplace offers either one, so you have to check your own plan documents or call HR.
Prescription medications, insulin, and diabetic supplies are obvious.
But so are eyeglasses, contact lenses, and exams.
Dental cleanings, fillings, and crowns qualify.
So do bandages, thermometers, blood pressure monitors, and many over-the-counter medicines, which became permanently eligible a few years back.
Even some sunscreen and menstrual products count now.
A few easy moves can drain a leftover balance fast.
Book that eye exam and order a year's supply of contacts or a backup pair of glasses.
Schedule a dental cleaning before the clock runs out.
Stock up on eligible first-aid and cold-and-flu supplies.
If you've been putting off a medical appointment, this is the moment to use it.
One warning worth repeating: you usually can't use FSA funds for insurance premiums, and you can't cash out the balance.
If you're unsure whether something qualifies, check the IRS list or your plan's online store before you buy.
Buying the wrong item means you eat the cost yourself.
The deadline pressure is real, but the fix is simple: log into your FSA portal today, see your balance, and make a plan for the next few weeks.
Appointment slots fill up in December, and shipping delays can push a purchase into January.
If you wait until the last week, you may run out of time through no fault of your own.
If you're weighing how much to set aside for next year, think about predictable costs: glasses, prescriptions, regular dental care.
Setting aside too much feels good in January and painful in December.
My take: this is one of the few money deadlines where a little planning pays off immediately.
Ten minutes with your FSA balance and a calendar can save you hundreds.
Final Thoughts
Treat the deadline like a bill you actually want to pay, because the alternative is letting your own money walk out the door.