Millions of American workers are about to forfeit money they already earned, and most won't notice until it's gone.
Flexible Spending Account balances typically reset at year-end or at the end of a grace period, and whatever's left in the account often vanishes.
The catch is that an FSA isn't a savings account.
It's a use-it-or-lose-it benefit, and the average participant who leaves money behind is handing over somewhere between $100 and $400, according to benefits industry data.
If your plan runs on a calendar year, your deadline is December 31.
If your employer offers a grace period, you may have until March 15.
And if your plan allows a carryover, you can roll over a limited amount into the next year — but only if your employer opted into that feature.
That last part trips people up constantly.
The IRS permits employers to offer either a grace period or a carryover, not both, and the carryover cap for 2025 sits at $660.
Your HR portal or plan administrator's website is the only place to confirm which rules apply to you, because they vary by employer.
What actually counts as an eligible expense is broader than most people assume.
Over-the-counter medications now qualify without a prescription.
So do bandages, thermometers, contact lens solution, first-aid kits, menstrual products, sunscreen, and even some acne treatments.
Deeper in the list: eyeglasses and prescription sunglasses, hearing aids and batteries, dental cleanings and fillings, orthodontia, therapy sessions, and copays for doctor visits.
If you've been putting off an eye exam or a dental appointment, the deadline is the nudge.
A few strategies can rescue a balance fast.
Book a dental or vision appointment before the cutoff and pay at the visit.
Stock up on eligible OTC items you'll genuinely use.
If you wear glasses, order a backup pair.
Some plans even reimburse mileage driven for medical care.
One warning worth repeating: don't buy random stuff just to burn the balance.
You'll need to submit receipts, and ineligible purchases get rejected — leaving you with a product you didn't want and money still stuck in the account.
If you're still unsure, call your plan administrator.
A five-minute phone call beats losing several hundred dollars, and they can tell you your exact balance and deadline.
The uncomfortable truth is that FSAs reward people who plan and punish people who don't.
A balance sitting untouched isn't a safety net — it's a countdown.
Final Thoughts
Checking your account today costs nothing.