There's a pile of money with your name on it, sitting in an account you probably forgot about.
It's your flexible spending account, and if you don't use it by the deadline, it vanishes.
If your employer offers an FSA, you set aside pre-tax dollars for medical expenses throughout the year.
The trade-off is that FSAs are "use it or lose it" by design.
The IRS gives employers the option to offer a grace period of up to 2.5 months or let you carry over up to $640 into the next year.
Some deadlines hit on December 31, and that's it.
Your FSA debit card works at the register, but a lot of eligible expenses don't happen at a checkout counter.
Think about what you've already paid for out of pocket this year.
Prescription glasses, contact lenses, dental copays, therapy sessions, allergy medication, sunscreen, bandages, and even some menstrual products qualify.
So do hearing aids, walkers, and breast pumps.
You can also shop the FSA store aisle without leaving your couch.
Retailers like Amazon, Walgreens, and CVS let you filter by FSA eligibility.
Just make sure whatever you buy is a qualified medical expense, not a general health item like vitamins or gym membership.
For most plans, the expense has to be incurred by the deadline, not just paid.
So if you're scheduling a dentist visit for December 30, confirm the plan counts the date of service, not the date the claim processes.
If you get audited, you'll need to prove the purchase was medical.
One more wrinkle: some employers offer a grace period that pushes your deadline into March 15 of the following year.
Others let you carry over a small amount.
Check your plan documents or call your benefits administrator.
It takes five minutes and could save you hundreds.
If you're staring at a balance you can't spend in time, there are a few legitimate moves.
Stock up on eligible over-the-counter items you'll actually use.
Schedule that eye exam or dental cleaning you've been putting off.
Refill prescriptions early if your plan allows it.
You can also buy eligible items for dependents, even if they're not on your plan.
What you shouldn't do is panic-buy a crate of thermometers you'll never open.
The goal is to spend on things you need, not to burn cash on clutter.
A $200 balance is worth a $200 pair of prescription sunglasses.
It's not worth $200 of stuff that ends up in a junk drawer.
The deadline sneaks up every year, and every year millions of dollars get forfeited.
According to some estimates, workers lose hundreds of millions of dollars in unused FSA funds annually.
That's real money out of your paycheck that never made it back to you.
The bottom line: your FSA isn't a savings account, and treating it like one is how you lose.
Spend it on care you actually need before the clock runs out.
Final Thoughts
Five minutes of planning now beats watching that money evaporate in January.