If you set aside money in a flexible spending account this year, the clock is running out faster than you might think.
Most account holders have to spend down their balance by December 31, and whatever is left after that can vanish.
Unlike a savings account, an FSA doesn't roll over indefinitely — miss the deadline and that cash typically goes back to your employer.
The stakes are real because the average worker contributes somewhere between $1,500 and $2,000 a year, and many people don't realize how much is still sitting there until late December.
That's money you already earned and set aside, so leaving it unspent is one of the more avoidable money mistakes of the year.
The first thing to check is your plan's actual deadline and whether it offers a grace period or carryover.
Some employers give you until March 15 of the following year to spend the balance.
Others let you roll over a limited amount — for 2024 into 2025, that cap is $640.
But plenty of plans offer neither, and you won't know which camp you're in unless you read the fine print or call your benefits administrator.
Once you know your deadline, log into your account and look at the exact balance.
Then think about what you and your family actually need in the next few months.
The eligible expense list is longer than most people assume, and it's worth scanning for things you'll buy anyway.
Everyday items that qualify often include prescription medications, insulin, bandages, contact lenses and solution, eyeglasses, and many over-the-counter medicines if you have a prescription.
You can also stock up on things like first aid supplies, thermometers, blood pressure monitors, and even sunscreen, which counts as an eligible expense.
If you wear glasses or contacts, this is a good time to use your vision benefit before the year ends.
An exam plus a new pair of frames can wipe out a decent chunk of your balance, and you'd be spending that money anyway.
Dental work counts too — cleanings, fillings, crowns, and orthodontia are generally eligible, so ask your dentist if there's anything you've been putting off.
For bigger balances, look at expenses you can prepay.
Many plans let you pay ahead for orthodontic treatment, electives, or a year's worth of contact lenses.
Just confirm with your administrator first, because rules vary by plan.
One warning: don't buy random eligible items just to drain the account.
If you wouldn't use it, you're not saving money — you're just converting cash into clutter.
The goal is to spend on things you genuinely need, not to chase a receipt.
Also remember that dependent care FSAs work differently from health FSAs, with their own deadlines and eligible expenses like daycare and after-school programs.
If you have both, check each one separately.
A quick call to your benefits line can clear up most confusion in a few minutes.
Ask three questions: what's my exact balance, what's the hard deadline, and do I have a grace period or carryover?
Write down the answers and act before the calendar flips.
Setting a reminder for next year is the simplest fix.
Estimate your expenses more conservatively, or contribute a bit less so you're not scrambling every December.
A smaller contribution you fully use beats a bigger one you partly forfeit.
The bottom line is that this money is yours, but only if you claim it in time.
Spend a few minutes this week checking your balance, and don't let a busy holiday season cost you hundreds of dollars.
Final Thoughts
A little planning now is the difference between using your benefit and handing it back.