There's a pile of your own money sitting in an account right now, and it may be weeks away from vanishing.
If you have a flexible spending account through your job, you likely agreed to set aside a chunk of each paycheck for medical or dependent care costs.
The catch: many plans require you to spend that balance by December 31, or you forfeit whatever is left.
Roughly $400 million in FSA funds gets surrendered to employers annually, according to estimates from the Employee Benefit Research Institute.
That's not corporate waste — that's real household money that workers earned and then lost because the paperwork never got filed.
The average FSA contribution runs around $1,500 to $2,000 for healthcare accounts, with a 2025 limit of $3,300 per employee.
Dependent care accounts cap at $7,500 for married couples filing jointly.
If you funded either one and stopped paying attention in October, this is your wake-up call.
Some employers offer a grace period of up to 2.5 months into the new year, letting you spend 2025 funds until March 15, 2026.
Others offer a carryover instead — you can roll up to $660 of unused healthcare FSA money into next year.
Many offer neither, and you won't know which category you're in until you read your plan documents or call HR.
The eligible expense list is wider than most people think.
Prescription glasses, contact lenses, and sunglasses with a prescription count.
So do bandages, heating pads, blood pressure monitors, pregnancy tests, and sunscreen with an SPF of 15 or higher.
Over-the-counter medicines became permanently eligible in 2020.
Dental cleanings, fillings, and orthodontia qualify.
Even a new pair of prescription safety goggles for a hobby can work.
You can also book services before the deadline even if the appointment happens later.
Schedule that eye exam, dental cleaning, or therapy session now and pay before the cutoff.
Just confirm your provider will bill you in time.
They cover daycare, before- and after-school programs, summer day camps, and a nanny or au pair.
The rules are stricter, and the money is use-it-or-lose-it with almost no grace period in most plans.
If your kid's camp deposit is due in January, you may be able to prepay before December 31 to capture the expense.
One practical move: log into your FSA portal today and check your balance.
Then check the deadline — it's printed in your summary plan description, usually buried in a benefits PDF nobody opens.
If the money is at risk, schedule a bulk order of eligible supplies through an FSA store, which guarantees every item qualifies so you don't have to guess.
This isn't free money from your employer — it's your own wages, routed through a tax break you chose.
Letting it expire is a voluntary pay cut.
Final Thoughts
Fifteen minutes with your benefits portal this week could save you hundreds.