If you have a healthcare or dependent care flexible spending account, there's a decent chance you're sitting on money that will evaporate if you don't act soon.
Most FSA plans run on a calendar-year schedule, which means the use-it-or-lose-it deadline lands at the end of December for a huge share of American workers.
Some employers offer a grace period into mid-March or a small carryover, but plenty don't—and whatever's left simply vanishes.
The average employee contributes somewhere between $1,000 and $2,000 a year to a healthcare FSA, according to benefits industry data.
Workers who under-spend by even a few hundred dollars are essentially handing that money back to their employer.
Unlike a 401(k), there's no penalty-free rollover option by default.
The eligible expense list is longer than most people realize.
Prescription glasses and contacts, dental cleanings and fillings, hearing aids, bandages, thermometers, blood pressure monitors, and most over-the-counter medications are covered.
If your doctor writes a letter of medical necessity, you can even use FSA dollars for things like acupuncture, fertility treatments, or a humidifier for a diagnosed condition.
A few moves worth making before the clock runs out: **Book the appointments you've been putting off.** A dental cleaning, an eye exam, or a dermatology visit can absorb a chunk of your balance quickly.
December schedules fill up fast, so call now. **Stock up on eligible basics at the drugstore.** Pain relievers, allergy medicine, first aid supplies, feminine products, and sunscreen are all FSA-eligible.
Just keep the receipts. **Check your plan's specific rules first.** Some require a prescription for OTC items even though federal law no longer does.
Log into your benefits portal before you shop. **Consider a new pair of glasses or a backup set of contacts.** Vision expenses are one of the easiest ways to spend down a balance, and prescription sunglasses count too.
That money covers daycare, after-school programs, and summer day camp for kids under 13, plus care for a disabled dependent.
The catch is you can only be reimbursed up to what you've actually contributed so far, so if you enrolled late in the year, you may not have access to the full amount yet.
One more thing worth flagging: if you're reimbursed for an expense and then your employer also pays for it, or you claim it as a tax deduction, that's double-dipping and the IRS notices.
If you do end up with a small leftover balance and your plan offers a carryover, find out the exact cap—it's typically a few hundred dollars and it doesn't roll over forever.
The bottom line: that money is already yours.
Final Thoughts
Treat the deadline like a bill that's due, and a few quick appointments or a stocked medicine cabinet can keep it from disappearing.