If you set aside money in a flexible spending account this year, the clock is running out faster than you might think.
Most employers require you to spend those funds by December 31, and whatever is left typically vanishes.
Unlike a health savings account, which lets balances grow year after year, an FSA is a use-it-or-lose-it arrangement.
The average worker earmarks somewhere between $1,500 and $2,000 per year, according to benefits industry surveys.
Leaving even a few hundred dollars on the table is a real loss, because that cash already came out of your paycheck before taxes.
There is a small cushion, but it depends entirely on your plan.
Some employers offer a grace period that pushes the deadline to March 15.
Others allow a carryover of a limited amount into next year.
The catch is that you cannot assume either applies to you.
You have to check your specific plan documents or call your benefits administrator.
If you still have a balance, here is the practical playbook.
Book that dental cleaning, eye exam, or annual physical you have been putting off.
Refill prescriptions, including 90-day supplies, before the year ends.
Stock up on eligible over-the-counter items: contact lens solution, bandages, thermometers, blood pressure monitors, and allergy medication.
Eyewear is one of the easiest ways to burn a balance.
A second pair of glasses, prescription sunglasses, or a year's worth of contacts can absorb several hundred dollars in one appointment.
Just confirm the provider is in network if your plan requires it.
Dependent care accounts follow a different set of rules, and that deadline matters too.
If you pay for daycare, after-school programs, or summer camp, submit those receipts now.
Many parents forget that these funds also expire, and reimbursement claims often need to be filed within a set window after the service date.
One more thing people miss: you generally have to submit receipts and claims, not just incur the expense.
Swiping your FSA debit card at the register usually handles this automatically, but if you paid out of pocket, you still need to file.
A receipt sitting in your glove compartment does not count as a claim.
Set a reminder for this week to log into your account and check the balance.
Then map out which appointments or purchases can happen before the cutoff.
If you truly cannot spend it, ask whether your plan allows a carryover or grace period, because the answer changes your options.
Our take: an FSA is a great deal right up until December 31, when it becomes a countdown clock.
Treat the deadline like a bill you owe yourself, and you will stop donating your own money back to your employer.
Final Thoughts
A 20-minute appointment now beats losing a few hundred dollars you already earned.