There's a deadline coming that won't send you a reminder, won't text you, and won't care that you forgot.
If you have a flexible spending account through work, the money sitting in it may vanish if you don't spend it in time.
Unlike a savings account, an FSA is a use-it-or-lose-it arrangement.
The IRS generally lets employers give you until December 31 to spend the funds, though some plans offer a grace period into mid-March or let you carry over a limited amount to the next year.
The average employee elects around $1,500 to $2,000 a year into a health FSA, deducted straight from paychecks before taxes.
Forfeit even part of that, and you've handed back money you already earned.
Why it stings more this year: everyday costs have climbed.
Rent, groceries, and insurance premiums have eaten into budgets, and a few hundred dollars of unspent FSA money is a bigger deal than it used to be.
Meanwhile, credit card balances are near record highs, so an FSA you can't use is money you can't throw at debt.
The fix isn't complicated, but it requires a few minutes now instead of a scramble later.
Start by logging into your benefits portal and checking three things: your balance, your plan's deadline, and whether your employer offers a grace period or carryover.
Those details vary widely, and assuming yours matches a coworker's can cost you.
FSA funds typically cover doctor visits, prescriptions, dental work, glasses and contacts, hearing aids, and many over-the-counter items.
Since 2020, menstrual products and most OTC medicines qualify without a prescription.
If you're not sure about an item, your plan administrator usually has a searchable list.
One smart move is scheduling care you've been putting off.
An annual physical, a dental cleaning, an eye exam, or a refill on a maintenance prescription all count.
If you wear contacts, stocking up on a year's supply is a common way to soak up a leftover balance before the clock runs out.
Just don't wait until the final week to book.
Appointment slots fill up fast in December, and receipts submitted after the deadline often don't count, even if the service happened earlier.
Dependent care FSAs, which cover daycare and summer camp, run on separate rules and separate deadlines.
And if you leave your job mid-year, you typically can't use the full amount you elected, so check the fine print before you count on it.
If your balance is small and your deadline is close, spending it on eligible staples beats losing it.
Cold medicine, bandages, sunscreen, and first-aid supplies are the kind of everyday purchases that absorb a stray $60 without waste.
The bottom line: this is one deadline where ignoring it costs you directly.
Two minutes in your benefits portal now could save you hundreds of dollars that you've already paid in.
Employers rarely chase you down, and by the time the money is gone, there's no appeal.
Final Thoughts
Treat the FSA deadline like a bill you owe yourself.