If you set aside money in a flexible spending account this year, there's a decent chance a chunk of it is still sitting there untouched.
And unlike a savings account, an FSA doesn't let your balance roll over forever.
Miss the deadline, and that money can vanish.
The exact cutoff depends on your employer's plan, but many run on a calendar-year schedule with a grace period or carryover option.
Some allow you to spend funds until March 15 of the following year.
Others let you roll over a limited amount, often a few hundred dollars, while the rest is forfeited.
Surveys consistently find that a large share of FSA holders leave money on the table every year, sometimes hundreds of dollars per household.
It's one of the rare cases where losing money is the default outcome if you do nothing.
First, log into your benefits portal and confirm your plan's exact deadline and balance.
Don't assume it matches your coworker's plan, since employers choose their own rules.
The list is longer than most people think.
Besides doctor visits and prescriptions, you can often use FSA funds for glasses, contact lenses, bandages, thermometers, sunscreen, acne treatments, menstrual products, and even some over-the-counter medications thanks to a rule change that took effect in 2020.
Dental and vision expenses are the big ones people overlook.
If you've been putting off new glasses or a cleaning, December and early January are the moment to book it.
Many providers get slammed at year-end, so call sooner rather than later.
If you're short on appointments, consider stocking up on eligible staples you'll use anyway.
Just avoid buying things you don't need purely to zero out the balance, that defeats the purpose.
And keep your receipts, since some purchases require documentation if you're audited.
One warning worth repeating: FSA dollars generally can't be used for insurance premiums, and they can't be cashed out.
You either spend them on eligible expenses or you lose them.
That's the trade-off for the tax break you got upfront.
If your balance is large and your deadline is close, a few strategies help.
Some plans reimburse expenses incurred before the deadline even if you file the claim later, so dig through old receipts and submit anything you forgot.
Others let you use a dependent care FSA for daycare, after-school programs, or summer camp, with its own separate deadline.
The bottom line is that this is one deadline where being a few days late has a real cost.
Set a phone reminder, check your balance today, and spend it on something your household actually needs.
My take: FSAs are a rare case where the tax code rewards you for planning ahead, but they punish procrastination hard.
If your employer offers a carryover, treat it as a floor, not a reason to relax.
Final Thoughts
And if you consistently lose money here, it may be worth lowering your contribution next open enrollment to a number you can realistically spend.