If you have a healthcare or dependent care flexible spending account through work, there is a decent chance you are sitting on money that will evaporate in a matter of weeks.
Use-it-or-lose-it rules are written into most of these plans, and the calendar does not care about your good intentions.
The exact cutoff depends on your employer.
Many plans run on a calendar year, which means balances typically need to be spent by December 31.
Others follow a mid-year plan year, or offer a grace period of up to two and a half months, or let you carry over a limited amount into the next year.
For recent plan years the IRS has allowed up to $640 to roll into the following year for health FSAs, and that number adjusts over time.
Anything above the cap that you do not spend or claim goes back to your employer.
It does not follow you to a new job either.
Dependent care accounts are stricter in a different way.
They generally do not allow a carryover at all, though some plans offer a grace period.
If you set aside money for daycare, after-school care, or summer camp and your situation changed, that balance is at risk.
The good news is that spending the money is easier than most people assume, and you do not need to be sick to do it.
Eligible expenses typically include prescription glasses and contacts, dental work, copays and deductibles, therapy, bandages, thermometers, blood pressure monitors, pregnancy tests, and a long list of over-the-counter items.
Many retailers now label FSA-eligible products directly on their shelves and websites, which takes some of the guesswork out.
Drugstores like CVS and Walgreens flag eligible items online, and Amazon has a dedicated FSA and HSA storefront.
Some card programs also let you swipe your FSA debit card at the register for approved purchases.
One often-overlooked option: online marketplaces built specifically for this deadline.
Sites like the FSA Store stock only eligible products, so nothing in your cart should get rejected.
That is useful when you are trying to burn a balance quickly and do not want to gamble on reimbursement.
If you pay out of pocket and file for reimbursement, the expense usually counts based on the date of service or purchase, not the date you submit the paperwork.
But your plan still sets a filing deadline, often in March or April, so do not sit on receipts thinking you have unlimited time.
Check your plan documents before you assume anything.
Grace periods, carryover amounts, and deadlines vary by employer and administrator, and a two-week difference can mean the gap between a refund and a donation to your company's bottom line.
Log into your account, see what is left, and work backward from the deadline.
Book the dental cleaning, order the contacts, restock the medicine cabinet, and submit every receipt you have been ignoring.
Spend it on purpose rather than losing it by accident.
The rules here are not generous, they are just unfamiliar, and unfamiliarity is expensive.
A little admin work in the next few weeks beats watching a few hundred dollars disappear.
Final Thoughts
Treat the deadline like a bill you owe yourself.