If you have a Flexible Spending Account (FSA), you probably already know it’s one of those benefits that feels both generous and just a little tricky to manage. It helps cover medical expenses with tax-free dollars—great. But if you don’t use those funds by the deadline? You risk losing them altogether. Less great.
And when you’ve worked hard to make wise financial choices, seeing unused dollars vanish because of a technicality or poor planning can feel frustrating. The good news is that with just a little guidance—and the right reminders—you can still put your FSA funds to smart, practical use before they expire.
This guide walks you through what counts as an eligible expense (some are surprisingly useful), how to check your plan’s rollover or grace period rules, and how to make decisions that prioritize both your health and your money. It’s here to help you spend intentionally, without rushing or second-guessing, and walk into the new year with a little more ease.
Understanding the FSA Deadline—and What Happens If You Miss It
Let’s start with the basics, because understanding the timeline is half the battle.
The Standard “Use It or Lose It” Rule
Most FSAs follow a calendar-year schedule, meaning you have from January 1 to December 31 to use the funds you contribute. If you don’t use them by that deadline, the money goes back to your employer. No refunds. No exceptions.
However, some employers offer a grace period—typically giving you until March 15 of the following year to spend the previous year’s funds. Others allow you to roll over a portion of your balance (up to $640 in 2024) into the next plan year.
But here’s the key: not every plan includes these options. You have to check with your HR department or FSA plan administrator to confirm your plan’s specific rules.
According to the Employee Benefit Research Institute (EBRI), roughly 40% of employees with FSAs forfeit some of their funds each year due to missed deadlines or lack of awareness.
What Your FSA Actually Covers
You probably know you can use your FSA for co-pays, prescriptions, and over-the-counter medications. But the list of eligible items is wider—and more interesting—than most people realize. Here are a few categories that often get overlooked but are fully FSA-eligible:
1. Vision and Eye Care
You can use your FSA for eye exams, prescription glasses, contact lenses, and even LASIK surgery. Readers count too, as long as they’re prescription-strength.
Need a backup pair of glasses? This is the perfect time to get them.
2. Dental Work
Routine cleanings, fillings, X-rays, dentures, bridges, and other dental procedures are all eligible. Teeth whitening, however, is not.
If you’ve been postponing dental care due to cost, this is a good moment to schedule those appointments or pay off outstanding bills.
3. Hearing Aids and Accessories
Your FSA can help pay for hearing aids, batteries, repairs, and maintenance. Even hearing exams may be eligible.
Considering an upgrade or replacement? This is the time to act before funds expire.
4. Health Products and First Aid Supplies
The FSA Store (an online marketplace built for FSA users) is filled with eligible items like:
- Blood pressure monitors
- Thermometers
- Orthopedic supports
- First aid kits
- Sunscreen (yes, as long as it’s SPF 15 or higher)
- Menstrual care products
- Sleep aids (including items like sleep masks and certain OTC products)
Tip: You don’t need a doctor’s note for most over-the-counter medications anymore. That rule changed in 2020 under the CARES Act.
Surprisingly Smart Ways to Spend Your FSA
Not sure what to spend your remaining balance on? Here are a few practical, lesser-known ideas that can still make a big difference in your well-being:
1. Acupuncture and Chiropractic Care
If you’ve been curious about these complementary therapies but haven’t wanted to pay out of pocket, now’s your chance. Many FSAs will reimburse for sessions as long as they’re medically necessary and performed by licensed professionals.
2. Mental Health Support
FSA funds can be used for therapy and counseling (not just psychiatry), provided it’s for a diagnosable condition. That includes anxiety, depression, or stress-related symptoms. Some plans also cover group therapy or substance use treatment.
Keep in mind: You’ll need documentation, and the provider must be licensed.
3. Mobility and Home Health Aids
FSAs can help pay for walkers, canes, bathroom safety rails, orthopedic cushions, and similar aids. These can be especially helpful if you're managing joint pain, post-surgical recovery, or general mobility concerns.
4. Reimbursement for Past Bills
Still have receipts from earlier in the year? Many plans allow you to submit eligible expenses retroactively, as long as they were incurred during the plan year and fall under eligible categories. This is a great way to recover funds you’ve already spent.
Pro tip: Go through old receipts from your pharmacy or provider portals—you might find reimbursable expenses you forgot about.
FSA Deadlines: What You Can Still Do—And When
If You Have a Grace Period
You usually have until March 15 of the following year to spend unused FSA funds, giving you extra time to schedule appointments or order products. But don't wait too long—providers book up fast in January and February.
If You Have a Rollover
Some employers allow you to roll over up to $640 into the next plan year (2024 figure). Anything over that amount expires. If you’re under the rollover cap, you don’t need to rush—but it’s still worth making a plan so those dollars don’t go unused.
If Your Deadline Is December 31
You’ll want to act quickly. Many FSA-eligible purchases can be made online, and services can often be scheduled in the final weeks of the year, even if the appointment is early in the new year (as long as you pay in advance).
What Not to Do: Common Missteps That Cost You
Knowing how to use your FSA wisely also means knowing what not to do. Here are a few pitfalls to avoid:
- Waiting until the last minute — It’s tempting to procrastinate, but product delivery times and appointment availability shrink in late December.
- Assuming all expenses are covered — Not every health-related product qualifies. Massage chairs, for example, usually don’t unless prescribed.
- Using funds for non-dependents — You can only use your FSA for yourself and qualified dependents (typically spouse and children under 26).
- Over-buying OTC meds — You’ll want to buy what you’ll actually use—not just stockpile pain relievers you'll never touch again.
How to Check Your FSA Balance and Benefits
Not sure how much is left in your FSA—or what exactly it covers? Here's how to find out:
- Log into your FSA provider portal (this is usually through your benefits administrator or HR platform).
- Look for your current balance, plan year dates, and any grace period or rollover options.
- Review your provider’s list of eligible expenses. Most offer a downloadable guide or link to IRS Publication 502, which outlines medical expense definitions.
- Contact customer service if you’re unsure. A quick phone call could save you hundreds of dollars.
Smart Aging
- Use your benefits like a budget—on purpose, not in panic. Waiting until the deadline makes it harder to spend wisely. Use calendar reminders to stay ahead next year.
- Wellness includes what you actually use. If you know you need new glasses or OTC supplies, make your FSA dollars work for the life you’re already living.
- Don’t let fine print trip you up. Understand your plan’s rules early—grace period or rollover? Knowing helps you plan, not guess.
- Mental health matters, too. Counseling, therapy, and even some telehealth options may be covered. Use your dollars where they’ll bring real peace of mind.
- Reclaim what you’ve already paid. Receipts from January to now may still be reimbursable. That’s your money—take a second look before it disappears.
Last Call Doesn’t Have to Mean Last Minute
Your FSA isn’t just some complicated workplace benefit—it’s a tool designed to support your health and lighten the financial load that often comes with it. But it only works if you use it, and more importantly, use it with intention.
You’ve earned those dollars. They’re not just “extra”—they’re part of your strategy for staying well, aging with confidence, and being proactive instead of reactive. Whether it’s a new pair of glasses, a stock-up on essentials, or a long-overdue appointment, these choices can quietly add up to real impact.
So take a few moments, review your balance, make a list, and put those funds to work. The deadline may be firm, but the possibilities are still open.
And that’s always a good way to end the year—and start the next one.
