If you have a flexible spending account through work, there's a decent chance you're sitting on a few hundred dollars you forgot about.
And unlike a savings account, this money doesn't wait around forever.
Most FSA funds must be spent by December 31, or you risk forfeiting whatever is left.
Employers can offer one of two grace options: a carryover that lets you roll a limited amount into next year (the IRS cap is $640 for 2025), or a grace period that extends your deadline to March 15.
If yours doesn't, any unspent balance simply disappears.
The average employee forfeits somewhere between $300 and $500 a year this way, according to benefits industry estimates.
That's real money, and it's already been taken out of your paycheck tax-free, which is the whole point of an FSA.
Vision expenses like glasses, contacts, and exams.
Dental work, including cleanings and fillings.
Bandages, thermometers, blood pressure monitors, and many over-the-counter items now qualify without a prescription.
So do pregnancy tests, breast pumps, and even some travel-sized first aid kits.
A few things to know before you sprint to the pharmacy.
You generally can't use FSA money for cosmetic procedures, gym memberships, or general health items like vitamins unless a doctor writes a letter of medical necessity.
And you can't double-dip: if your insurer already paid a claim, you can't run it through your FSA too.
The smartest move right now is to log into your benefits portal and check two numbers: your remaining balance and your exact deadline.
Then check whether your plan has a carryover or grace period, because that changes your timeline completely.
If you have money to burn before the cutoff, here's a practical order of operations.
First, book any appointments you've been putting off, like an eye exam or dental cleaning.
Second, restock the medicine cabinet with eligible items you'll use anyway.
Third, look at bigger-ticket needs like new glasses, prescription sunglasses, or a replacement CPAP mask.
Many FSA store websites label items as eligible, which saves the guessing game.
One caution: don't buy random stuff just to zero out the balance.
Spending $200 on things you'll never touch isn't a win.
The goal is to convert money you already set aside into things you actually need.
The IRS requires documentation for FSA purchases, and your administrator can ask for it later.
A quick photo in a folder on your phone takes ten seconds and saves headaches.
If you do end up with a small leftover balance and no carryover, ask your HR team whether your plan allows a run-out period.
Some employers let you submit claims for expenses from the prior year for a few extra weeks, even after the calendar flips. **The bottom line:** an FSA is a use-it-or-lose-it deal, and December tends to sneak up fast.
Fifteen minutes of checking your balance and booking one appointment could save you hundreds.
Final Thoughts
Treat the deadline like a bill that's due, because in a way, it is.