If you stuffed money into a healthcare or dependent care flexible spending account this year, the clock is louder than you think.
Most plans require you to spend that balance by December 31, and whatever is left typically goes straight to your employer.
Here's the part that trips people up: FSA money isn't like a savings account.
You can't cash it out, and you can't quietly let it ride into next year unless your specific plan spells out a grace period or a carryover.
Many workers assume their balance is safe.
The average household contributes somewhere in the low four figures to a healthcare FSA, and a surprising number of people forfeit a chunk of it every single year.
Some estimates put total forfeited FSA dollars in the hundreds of millions annually across U.S. workers.
That's money you already earned, sitting in an account that expires.
So what actually counts as a qualified expense before the deadline?
Over-the-counter medicines and menstrual products have been eligible since 2020 without a prescription.
Bandages, thermometers, first-aid kits, contact lens solution, reading glasses, and even some sunscreen qualify.
COVID tests, pregnancy tests, and breast pumps count too.
Dependent care FSAs can cover daycare, after-school programs, and summer day camp—but not overnight camp or regular school tuition.
You don't always need the product in hand by December 31.
Many plans only require that you incur the expense by the deadline, which means you can buy now and submit the receipt later.
That distinction is huge if you're scrambling.
Log into your FSA portal and check two things: your exact balance and your plan's deadline rules.
Look for a carryover limit (often a few hundred dollars) or a grace period that pushes your spending window into mid-March.
Not every plan offers either, so don't assume.
Prescription refills you can stock up on.
Doctor visits, dental cleanings, or vision appointments you've been putting off.
These are all normal purchases you'd likely make anyway—you're just shifting the timing.
One warning: don't buy random stuff just to burn the balance.
If it's not a qualified expense, your claim gets denied, you lose the money anyway, and you've wasted cash on things you don't need.
Check the IRS Publication 502 list or your plan's eligible-expense search tool before you click buy.
Dependent care FSAs are trickier because you can only claim what you actually paid for care.
You can't prepay next year's daycare in December unless your provider bills you and you pay before the deadline.
Ask your provider if they'll let you prepay a week or two—some will.
If you're nowhere near spending your balance, ask HR whether your plan allows a run-out period.
That's a window after December 31 to submit claims for expenses you already incurred.
It doesn't extend when you can spend, but it buys you time on paperwork.
The bottom line: your FSA is use-it-or-lose-it unless your plan says otherwise, and the deadline is close.
Final Thoughts
Spend an hour this week checking your balance and booking the appointments or buying the supplies you'll need anyway.