The calendar is about to become your least favorite household expense.
If you have a flexible spending account through work, the money sitting in it typically must be spent by December 31 — and unlike a forgotten gift card, this balance doesn't roll over forever.
Here's the catch that trips up millions of workers: an FSA is a use-it-or-lose-it account.
You set aside pre-tax dollars from your paycheck during open enrollment, and once the year ends, whatever's left can vanish.
For a family that tucked away $3,000, that's real money evaporating.
Some employers offer a grace period, usually until March 15 of the following year, or a carryover of a limited amount into the next plan year.
The rules depend entirely on what your specific plan allows, so the only way to know is to check your benefits portal or call HR.
The good news is that spending the balance is easier than most people think.
FSA dollars cover far more than doctor visits.
Eligible purchases include prescription glasses and sunglasses, contact lenses and solution, bandages, thermometers, blood pressure monitors, and even some over-the-counter medications if your plan permits them without a prescription.
You can also stock up on everyday health items that don't expire quickly.
Think first-aid kits, menstrual products, sunscreen, acne treatments, and allergy medicine.
If you've been putting off a dental cleaning, an eye exam, or a pair of prescription shades, this is the week to book it.
One warning: don't panic-buy random items just to drain the account.
If you purchase something ineligible, the claim gets denied and you've wasted both the money and the effort.
Most stores now label FSA-eligible products directly on the shelf or online, and many retailers have a dedicated FSA section on their websites.
Even with a store-issued FSA card, the plan administrator can ask for documentation later, and a missing receipt can turn a valid purchase into a rejected claim.
A service counts for the year you receive it, not the year you pay for it.
So a dental appointment on December 28 counts for this plan year even if the bill arrives in January.
But scheduling a procedure for January 2 won't rescue this year's balance.
If you're staring at a large leftover amount and can't realistically spend it, ask HR whether your plan has a run-out period — a window after year-end to submit claims for expenses you already incurred.
That's different from a grace period and can buy you a few extra weeks to file paperwork.
Next year, consider lowering your contribution.
Many financial planners suggest estimating only predictable expenses — regular prescriptions, copays, glasses — rather than maxing out and hoping.
A dependent care FSA has its own separate rules and deadlines, so don't assume the two accounts work the same way.
The bottom line: check your balance today, confirm your plan's deadline in writing, and spend deliberately rather than desperately.
Final Thoughts
A few minutes on your benefits portal now beats watching hundreds of dollars disappear on January 1.