As the end of the year draws near, many Americans face a familiar challenge: spending the remaining money in their Flexible Spending Accounts (FSAs).
If you don’t use this money, you usually lose it at the end of the year, unless your employer allows a short grace period or a small carry-over.
Why FSAs Matter
FSAs allow people to put aside pre-tax money for medical expenses. Many use these accounts for doctor visits, prescription costs, and basic medical supplies.
But according to experts, millions of dollars in FSA funds go unspent every year, mostly because people are unsure about what items qualify.
More Than Just Medical Bills
The list of FSA-eligible items is bigger than most people think. In recent years, IRS rules have expanded the number of things you can buy with FSA dollars.
Besides the usual doctor visits and prescriptions, you can now use your FSA to pay for:
- Menstrual care products
- SPF-rated sunscreen
- Motion sickness aids
- First-aid supplies
- Baby thermometers
- Certain heating pads
- Over-the-counter medications (many don’t require a prescription now)
This expanded list helps families cover regular household health needs, not just the occasional emergency.
How to Make the Most of Your FSA
Experts recommend checking FSA vendor websites or online eligibility lists so you don’t miss out on any items. For example, personal care products, diabetes supplies, seasonal allergy medicine, and even corrective eyewear may all be covered.
Stocking up on these essentials by the year’s end can save you money and help you start the new year prepared.
Consumer-savings specialists also suggest planning your purchases ahead of time—don’t wait until the last minute! This helps avoid panic buying and ensures you spend your funds on things you actually need.
Double-Check Your Employer’s Policy
Not all employers have the same FSA deadlines or rules. Some let you carry over up to $640, while others only give a brief grace period. It’s important to check with your employer so you know your options and avoid losing your money.
Final Tips
With the deadline approaching, a little planning can help you make the most of your FSA. Even items like contact lens solution, postpartum recovery tools, and over-the-counter pain relievers may be covered.
Reviewing the list of eligible products and shopping smartly can keep more money in your pocket and make sure you’re fully supplied for what’s ahead.
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Check out: Stimulus Payments December 2025: Which States Are Sending Checks?
