There's a pile of cash sitting in millions of American bank accounts right now, and a good chunk of it is about to vanish.
It's not a scam or a hack—it's your flexible spending account, and the clock is ticking toward the end of the year.
If you set aside money in a healthcare FSA through your job, that cash generally has to be spent by December 31.
Miss the deadline and your employer keeps whatever's left.
The average worker forfeits somewhere between $100 and $500 a year this way, according to benefits trackers, and many don't realize it until it's already gone.
Here's the good news: you don't have to lose it.
You just have to spend it on things that actually count.
Most people think FSA dollars only cover doctor visits and prescriptions.
In reality, the list is long and surprisingly practical.
Bandages, contact lenses, glasses, sunscreen with SPF 15 or higher, pregnancy tests, and even some over-the-counter cold medicine qualify.
You can also stock up on thermometers, blood pressure monitors, and first-aid kits.
The trick is that many of these items now require a prescription to get reimbursed, thanks to a rule that kicked in a few years back.
So before you load up your cart, check your plan's rules or call the number on the back of your FSA card.
Some employers still allow OTC purchases without one.
Dental and vision are the big-ticket items people forget.
Been putting off a cleaning or a filling?
Same goes for therapy, chiropractic visits, and even some fertility treatments.
If you're staring at a balance and running out of ideas, there's a backup plan.
Many plans offer a grace period—usually until March 15—or a carryover, which lets you roll a limited amount into next year.
The carryover limit for 2024 is $640, but not every employer offers it.
Check your plan documents or ask HR directly.
One warning: don't try to game the system by buying stuff you don't need and reselling it.
That's fraud, and it can get you fired and fined.
For anyone with a dependent care FSA, the rules are different.
That money covers daycare, after-school programs, and summer camp, and the deadline is usually the same.
If you've been paying a sitter in cash, you may be able to submit receipts for reimbursement before the year ends.
The simplest move is to log into your FSA portal today, check your balance, and make a list.
Then spend it on things you'll actually use in the next six months—not random junk just to zero out the account.
Think of it as a forced shopping trip where the money is already yours. **Our take:** Losing FSA money is one of the most avoidable financial mistakes out there, and it happens to smart people every single year.
Set a phone reminder for mid-December, gather your receipts, and treat that deadline like a bill you can't ignore.
Final Thoughts
A little planning now beats watching your own money disappear.