If you have a flexible spending account at work, there is a decent chance you are sitting on a few hundred dollars that will simply vanish if you do not spend it soon.
Unlike a bank account, an FSA is a use-it-or-lose-it arrangement.
Most plans close their books on December 31, and any balance left behind generally goes straight to your employer.
The average employee who contributes to a health care FSA sets aside somewhere between $1,000 and $3,000 a year, and industry surveys have repeatedly found that a meaningful slice of workers forfeit part of it.
That is not free money you failed to claim.
It is money that already came out of your paycheck, pre-tax, all year long.
There is one wrinkle worth checking before you panic.
Many employers offer either a grace period of up to 2.5 months or a carryover of a limited amount into the next plan year, but not both.
The carryover figure is adjusted for inflation most years, so confirm your plan's exact number rather than relying on what a coworker told you.
Your HR portal or benefits administrator will list the specifics.
If a deadline is looming, the trick is to think beyond doctor visits.
FSA dollars typically cover prescription glasses and contacts, dental cleanings and fillings, hearing aids, bandages, thermometers, blood pressure monitors, and many over-the-counter medicines if your plan allows them without a prescription.
Sunscreen, acne treatments, and menstrual products also qualify under federal rules.
A purchase counts for the plan year in which it is incurred, not when you get around to filing the receipt.
So schedule that eye exam or dental visit now rather than in the last week of December, when appointment slots dry up fast.
One caution: do not buy things you will never use just to zero out the balance.
Stockpiling aspirin you cannot finish is not a win.
Spend on what your household will actually consume in the next several months.
For dependent care FSAs, the rules differ and the deadline pressure is often sharper.
You can only be reimbursed for care that has already been provided, so you cannot prepay a babysitter or daycare for January to use up December's balance.
Check whether your provider bills ahead or behind.
Here is the uncomfortable part of all this.
A use-it-or-lose-it deadline exists because the system is designed to reward people who can plan ahead and penalize everyone else.
Workers with unpredictable schedules, surprise medical needs, or no time to book appointments are the ones most likely to forfeit.
If that sounds like you, set a reminder for mid-November next year, not late December.
Final Thoughts
The calendar is the only thing standing between you and it.