If you have a flexible spending account through work, there's a decent chance a few hundred dollars sitting in it right now will vanish before you can spend it.
Unlike a savings account, an FSA is a use-it-or-lose-it arrangement.
Miss the deadline, and that money doesn't roll into next year or come back to you.
The catch is that the deadline isn't always December 31.
Many companies offer a grace period, letting you spend last year's funds until March 15.
Others use a carryover rule, which lets you roll a limited amount — the IRS currently caps it around $640 — into the new year.
That's why the single most useful thing you can do this week is log into your benefits portal and read the fine print on your specific plan.
The average FSA balance that goes unspent each year runs into the hundreds of dollars per household.
If you elected $2,000 and only used $1,400, that $600 doesn't just sit there waiting.
It's gone, and you can't write it off on your taxes either.
The good news is that spending it down is easier than most people think, because the list of eligible expenses is longer than the "doctor visits only" assumption many workers carry around.
Eyeglasses, contact lenses, and prescription sunglasses count.
So do hearing aids, bandages, thermometers, and most over-the-counter medications now that the pandemic-era rules made those permanently eligible without a prescription.
Sunscreen with an SPF of 15 or higher qualifies.
So do menstrual products, breast pumps, and a long list of pregnancy and fertility items.
You can also stock up on things you'll definitely use eventually.
Think contact lens solution, first-aid kits, blood pressure monitors, and diabetic testing supplies.
If you have a dependent care FSA, the rules are different, covering things like daycare, after-school programs, and summer day camp — but the same deadline pressure applies.
One trap to avoid: don't buy stuff you'll never use just to "beat the clock." An FSA reimbursement only works for a legitimate medical expense, and if you get audited or your employer asks for documentation, a random pile of receipts won't fly.
Spend on things you'll actually need in the next six to twelve months.
Another move worth checking: some plans let you submit claims for expenses you already paid out of pocket earlier in the plan year.
Dig through your bank and card statements from the past several months.
A copay here, a prescription there — those receipts can be claimed retroactively and pull cash back into your pocket.
And if you're not going to use the money, ask HR whether your plan allows a mid-year election change or a reduction.
Most don't, but it never hurts to ask before the window closes.
The bigger lesson is for next fall, when open enrollment rolls around.
Most people guess at their FSA number and either underfund it or overfund it.
A smarter approach is to add up last year's actual out-of-pocket medical spending, then elect slightly below that figure.
You leave a little on the table, but you stop donating money to your employer.
It's worth 15 minutes this week to check your balance and your deadline.
Final Thoughts
That's less time than you'd spend picking out new glasses — and it could save you several hundred dollars that's about to evaporate.