If you stuffed a flexible spending account election form into a drawer last fall and forgot about it, this is your reminder.
Most healthcare FSAs run on a calendar year, and the money left in them at midnight on December 31 does not roll into your savings account.
That's the "use it or lose it" rule, and it catches millions of workers every year.
The average employee forfeits somewhere between $100 and $500, according to benefits industry surveys, though the exact figure depends on who you ask.
Either way, it's real money vanishing because nobody checked a balance.
The good news is that you have more wiggle room than the December 31 date suggests.
Many employers offer one of two built-in extensions: a grace period of up to 2.5 months into the next year, or a carryover that lets you roll up to $640 of unused funds into the following plan year.
You cannot have both, and your specific plan chooses which one applies.
So the first move is boring but essential: log into your benefits portal today and find your remaining balance.
Then check whether your plan has a grace period or carryover.
That one detail changes your entire timeline.
Once you know the deadline, spend with intention rather than panic.
FSA dollars cover a wider range of items than most people realize.
Prescription glasses and contacts, dental cleanings and fillings, therapy sessions, prescription medications, bandages, thermometers, blood pressure monitors, and even some over-the-counter medicines now qualify thanks to the CARES Act changes.
You can also stock up on eligible everyday items you will definitely use, like contact lens solution, first aid supplies, and feminine products.
Just avoid buying things you'll never touch.
Spending $200 on allergy medicine you don't need isn't a win, it's a different kind of loss.
A few practical ways to drain a balance before the clock runs out: schedule that dental cleaning you've been postponing, book an eye exam and order new glasses, refill prescriptions early if your plan allows it, or prepay for eligible services you already know you'll need in January.
Many FSA debit cards let you pay providers directly, so there's no reimbursement paperwork.
If you wait until the final week, appointment slots fill up and online FSA stores get slammed.
Shipping delays can push a purchase past the deadline, and some plans require the service date, not the order date, to fall within the plan year.
Also remember that dependent care FSAs work differently, with their own limits and rules, so don't mix the two up when you're checking deadlines.
An FSA is one of the few tax breaks that rewards you for planning ahead, and it punishes procrastination with a silent forfeiture.
Ten minutes on your benefits portal this week could save you hundreds of dollars.
Final Thoughts
That's a better return than most things you'll do all month.