If you have a flexible spending account through work, there's a decent chance you're sitting on money that will evaporate.
These accounts let you set aside pre-tax dollars for medical or dependent care costs, but they come with a catch: spend the balance by your plan's deadline or forfeit it.
For many workers, that deadline lands on December 31, though some employers allow a grace period into mid-March or a carryover of a limited amount into the next year.
The tricky part is that not every plan follows the same rules.
Some offer a grace period, some allow a carryover, and some offer neither.
The only way to know which applies to you is to check your plan documents or call your benefits administrator.
Assuming you have extra time when you don't can mean waving goodbye to hundreds of dollars.
The good news is that spending down a balance is easier than it sounds.
Eligible expenses often go well beyond doctor visits.
Bandages, contact lens solution, sunscreen, thermometers, acne treatments, and even some over-the-counter pain relievers can qualify.
Many plans also cover prescription glasses, dental work, and mental health copays.
One of the most common mistakes is waiting until the last week of December to schedule an appointment.
Eye doctors and dentists book up fast, and that's exactly when everyone else is trying to squeeze in a visit.
If you need new glasses or a dental cleaning, call now rather than the week before the deadline.
Dependent care accounts work differently and usually follow a calendar-year deadline with no carryover at all.
If you've been paying for daycare, after-school programs, or summer camp, make sure you've submitted those claims.
Unlike medical accounts, these often require you to file paperwork rather than swipe a card, so unclaimed reimbursements can slip through the cracks.
There's also a paperwork trap worth flagging.
Some retailers sell "FSA eligible" items, but that label doesn't guarantee your specific plan will reimburse them.
A quick check of your plan's eligible expense list, or a call to your administrator, can save you from buying something you can't actually claim.
If you're nowhere near using your balance, a few moves can help.
Stock up on everyday health items you'll use eventually.
Schedule that overdue dental cleaning or eye exam.
Refill prescriptions early if your plan allows it.
And if you wear glasses or contacts, this is a reasonable time to order a backup pair rather than lose the money outright.
The final consideration is next year's election.
If you consistently struggle to spend your balance, you may be setting aside too much.
Dropping your contribution by a few hundred dollars can reduce the year-end scramble, though you'll want to weigh that against losing the tax break on money you would have spent anyway.
None of this is complicated, but it does require a few minutes of attention.
Check your balance, confirm your deadline, and knock out any appointments or purchases before the calendar runs out.
Final Thoughts
A little planning now beats watching your own money disappear into a plan's forfeiture column.