If you have a flexible spending account through work, there's a decent chance you're sitting on money that will disappear if you don't spend it soon.
Most healthcare FSAs follow a use-it-or-lose-it rule, and the deadline for many plans lands at the end of the calendar year.
Miss it, and the balance doesn't roll into your pocket.
The catch is that not every plan runs on the same clock.
Some employers offer a grace period that stretches the deadline into mid-March.
Others allow you to carry over a limited amount, which the IRS sets each year.
And some plans offer neither, meaning December 31 is a hard wall.
The only way to know which rules apply to you is to log into your benefits portal or call your plan administrator directly.
The average account balance people forfeit is often small, but it adds up fast when you consider how much was withheld from each paycheck.
That money came out of your gross pay before taxes, which is the whole appeal of an FSA.
You lowered your taxable income all year, and now the trade-off is that you have to actually use the funds.
Start with expenses you already know are coming.
Prescription refills, contact lenses, eyeglasses, dental cleanings, and copays all count.
So do many over-the-counter items, though the rules changed a few years back and now most OTC medicines require a prescription to qualify.
Sunscreen, bandages, and menstrual products are generally eligible without one.
If you're unsure, check the FSA Store or your plan's eligible expense list before you buy.
Guessing wrong means the purchase won't be reimbursed, and you'll be stuck scrambling again.
Keep every receipt, since many plans now require documentation even for card purchases.
There's one more move worth knowing about.
Many plans let you use FSA funds for dependent care, but that's a separate account with its own rules and its own deadline.
Don't mix the two up when you're racing the clock.
A quick tip: if you wear glasses or contacts, this is a good moment to get that eye exam you've been putting off.
You can often stack a new pair of frames and a year's supply of contacts into one purchase.
Just confirm your plan's deadline first, because a receipt dated after the cutoff usually won't fly.
The bigger lesson here is about how these accounts are designed.
They reward people who plan ahead and punish people who don't, which is a strange way to run a health benefit.
Final Thoughts
But as long as the rules stand, the smart play is to treat your FSA balance like a gift card with an expiration date.