If you have a flexible spending account through your job, there is a decent chance you are about to forfeit money you already earned.
Use-it-or-lose-it rules are real, and the clock on your 2024 balance is running out faster than most people realize.
Many employers give you until December 31 to spend your FSA funds.
Others offer a grace period that pushes the deadline to March 15.
A smaller group allows a carryover of up to $640 into the next year.
Which one applies to you depends entirely on your plan, and nobody is going to call and remind you.
Every year, workers leave hundreds of millions of dollars behind in these accounts, money that was already deducted from their paychecks.
The average forfeited amount runs into the hundreds per person, according to benefits industry surveys.
So what can you actually spend it on before time runs out?
Over-the-counter medications, bandages, contact lenses and solution, eyeglasses, prescription sunglasses, thermometers, blood pressure monitors, and first-aid supplies all generally qualify.
So do copays, dental cleanings, and many mental health visits.
A few things changed recently that are worth knowing.
Since 2020, menstrual care products count as eligible expenses.
So do many sunscreen products, which surprised a lot of people.
And if you have a dependent care FSA, that money covers daycare, after-school programs, and summer day camp, but it follows separate rules and often a separate deadline.
The fastest way to check your balance is your benefits portal or the FSA administrator's app.
Look for two numbers: how much is left, and the exact date it expires.
Do not assume your company offers a grace period just because a coworker mentioned one.
If you are sitting on a balance and running low on time, you have options.
You can stock up on eligible items you will genuinely use, schedule a dental or vision appointment you have been putting off, or refill prescriptions early if your plan allows it.
Some administrators run end-of-year sales specifically for this reason.
One warning: do not panic-buy random items just to zero out the account.
If an expense does not qualify, the claim gets denied and you have wasted both the money and the effort.
Check your plan's eligible expense list before you check out.
Even a debit card tied to your FSA can trigger a request for documentation later, and if you cannot produce it, the charge can be reversed and the funds returned to the account, where they may expire anyway.
The broader point is that an FSA only works if you treat it like a deadline, not a savings account.
The tax savings are real, but they evaporate the moment the calendar flips past your plan's cutoff.
My take: this is one of the few money problems that is completely solvable with a fifteen-minute calendar reminder.
Set it for early December, check your balance, and spend down what is yours.
Final Thoughts
The system is not designed to remind you, so you have to remind yourself.