If you have a flexible spending account through work, there's a decent chance a few hundred dollars are sitting in it right now with an expiration date.
Most employers close out the plan year on December 31, and unlike a 401(k), unused FSA money typically doesn't follow you into the new year.
That's the catch that makes FSAs so easy to fumble.
You save on taxes going in, but the trade-off is a use-it-or-lose-it rule that can quietly cost you real money if you forget about it.
The good news is you have more options than you might think, and a few of them don't require a single doctor's visit.
Many plans build in a grace period of up to 2½ months, letting you spend last year's balance until mid-March.
Others offer a carryover, which lets you roll a limited amount into the next year — the IRS caps it at $640 for 2025.
Your specific plan might have one, both, or neither, so dig out the benefits packet or log into your account portal and check.
Over-the-counter medicine counts now, no prescription needed.
That includes pain relievers, cold and flu medicine, allergy pills, and acid reducers.
So do bandages, first-aid kits, contact lens solution, and most vision correction products.
The list goes further than most people realize: sunscreen, menstrual products, pregnancy tests, blood pressure monitors, thermometers, and even some breast pumps.
Eyeglasses, prescription sunglasses, and dental work like fillings or crowns all count too.
One of the easiest moves is the FSA store run.
Major retailers and online FSA shops label eligible items clearly, and many let you filter by "FSA eligible" so you're not guessing at checkout.
Stockpile the stuff you'll actually use — pain relievers, contact solution, kids' thermometers — rather than buying random gadgets just to burn the balance.
You can also book appointments that eat up the balance fast.
A dental cleaning, an eye exam, new glasses, or a dermatology visit can absorb a chunk in one afternoon.
If you've been putting off a procedure, the deadline is a nudge to schedule it.
If you're still stuck near the end, a dependent care FSA works differently.
That money covers daycare, after-school programs, and summer camp, and it has its own rules and deadlines.
Here's the part people miss: you usually can't claim expenses after the plan's run-out period, even if the service happened earlier.
So if you got a filling in November but never submitted the receipt, do it now.
Dig through email and the glovebox for receipts you forgot to file.
Set a calendar reminder for mid-December, not December 31.
The last week of the year is a zoo, and online orders may not ship in time or process before the cutoff.
If your balance is small and you truly can't find a use, some employers let you forfeit it without penalty — you just lose the money.
It's not ideal, but it beats buying things you'll never touch.
The honest takeaway: an FSA only pays off if you plan for the deadline the same way you plan the spending.
Check your balance today, confirm your plan's grace period or carryover, and knock out the eligible purchases while there's still time.
Final Thoughts
Next year, estimate your expenses more conservatively so you're not racing the clock in December.