There's a pile of money with your name on it, and it's quietly shrinking every day.
If you set aside funds in a flexible spending account this year, the clock is running out — and whatever you don't spend, you generally don't get back.
Roughly 35 million Americans use healthcare FSAs, setting aside pre-tax dollars from each paycheck to cover medical costs.
The trade-off for that tax break is strict: unlike a bank account, an FSA typically operates on a use-it-or-lose-it basis.
Miss the deadline, and the balance can vanish.
The rules aren't one-size-fits-all, which is exactly where people get tripped up.
Many employers offer a grace period of up to 2.5 months into the new year, letting you spend last year's money through mid-March.
Others use a carryover, which lets you roll a limited amount — $640 in 2025 — into the next plan year.
Your specific terms live in your plan documents or your benefits portal, not in a generic online guide.
The average worker forfeits somewhere between $300 and $500 a year, according to estimates from benefits administrators, though individual losses range widely.
For a household already stretched by grocery bills and rent, it's a car payment or a month of utilities handed back to an employer.
Start with what you already know you need.
Prescription refills, contact lenses, eyeglasses, and diabetic supplies are straightforward.
Dental work counts, including cleanings and fillings.
So do copays and deductibles for medical, dental, and vision care.
Then there's the aisle most people forget: the drugstore.
Sunscreen with an SPF of 15 or higher qualifies as an FSA-eligible product.
So do bandages, heating pads, pregnancy tests, blood pressure monitors, and first-aid kits.
A quick trip with your FSA card can absorb a surprising chunk of a leftover balance.
One more option worth knowing: many plans let you use FSA funds for over-the-counter medications without a prescription, a change that took effect after the CARES Act passed in 2020.
That opened up pain relievers, allergy pills, and cold medicine as eligible purchases.
A few quick moves can save you from forfeiting.
Log into your benefits account today and check three things — your current balance, your plan's deadline, and whether you have a grace period or carryover.
Book any appointments now, since December calendars fill fast.
And if you're still holding a balance in the final weeks, stock up on eligible essentials rather than letting the money lapse.
One caution: don't panic-spend on things you'll never use.
Buying random items just to zero out a balance defeats the purpose.
The goal is redirecting money toward expenses you'd face anyway.
Also worth noting — dependent care FSAs run on similar deadlines but cover a different set of costs, like daycare and after-school programs.
Those funds don't transfer to your healthcare FSA, so check both accounts separately.
If your employer offers a carryover, you have a little breathing room.
If it doesn't, treat the deadline like a bill that's due. **The bottom line:** An FSA is one of the few tax breaks that punishes procrastination.
Final Thoughts
Ten minutes in your benefits portal this week could be worth hundreds of dollars — and that's a better return than most savings accounts are paying right now.