If you set aside money in a health or dependent care flexible spending account this year, the clock is running out on a chunk of your own paycheck.
Most FSA plans require you to spend the balance by December 31, and whatever is left typically stays with your employer.
For workers who tucked away the maximum, that can mean forfeiting hundreds or even thousands of dollars.
The rules vary by employer, which is where a lot of people get caught off guard.
Some plans offer a grace period until March 15 of the following year.
Others allow you to carry over a limited amount, which the IRS set at $640 for 2025.
Unless you check your plan documents or call HR, it's easy to assume you have more time than you actually do.
Health FSAs can cover a wider list of items than many people realize.
Along with doctor visits and prescriptions, eligible expenses often include eyeglasses, contact lenses, dental work, bandages, sunscreen, and menstruation products.
Some plans now let you buy over-the-counter medicines without a prescription, a change that took effect a few years ago.
If you're close to the deadline, a vision or dental appointment you've been putting off can absorb a balance fast.
That money is for day care, after-school programs, summer camp, and similar costs for kids under 13 or a dependent adult.
If you've already paid for care this year, you may be able to submit receipts for reimbursement before the deadline, even if the service happened months ago.
A few practical moves can help you avoid losing money.
First, log into your benefits portal and confirm your exact balance and deadline.
Second, check whether your plan has a carryover or grace period, since that changes your urgency.
Third, review the eligible expense list your administrator publishes, because it's usually more generous than people assume.
Finally, remember that you typically need to submit receipts and get reimbursed, so don't wait until the final week to start the paperwork.
One common mistake is rushing to buy things you don't need just to zero out the balance.
Stockpiling items you'll never use defeats the purpose of a tax-advantaged account.
A better approach is scheduling care you genuinely need, like an annual exam, a dental cleaning, or new glasses, and using the account for expenses you'd face anyway.
Also worth noting: the deadline applies to when you incur the expense, not always when you file the claim.
Many plans give you a few extra weeks into January to submit receipts for purchases made before the cutoff.
Confirm both dates so you don't lose a valid claim on a technicality.
For next year, some employers are shifting to a different account structure, so it's worth re-reading your enrollment materials before you elect an amount.
Estimating too high is the single biggest reason people forfeit money.
The FSA deadline is one of those quiet dates that costs real money when it slips by.
A ten-minute check of your balance and plan rules now is worth far more than a frantic scramble later.
Final Thoughts
Treat it like any other bill that's due, because in a sense, it is.