Use It or Lose It: Your FSA Reminder Before It’s Too Late!

A few years ago, right after Marie was born, I learned an almost very expensive lesson

about FSAs. The kind of lesson that makes your stomach drop, your palms sweat, and

your spouse look at you like, “Please tell me we didn’t just waste that much money.”

We had signed up for a Dependent Care FSA, maxed it out at $5,000, and felt like

responsible adults checking off one more box during open enrollment. Fast-forward to

the end of the year… we almost forgot to use it.

And by “almost,” I mean we were less than two weeks from letting $5,000 disappear into

the abyss forever.

Money we had already earned.

Money we had already contributed.

Money we would never get back.

Thankfully, after a mild heart attack and some frantic Googling, we were able to submit

childcare receipts in time. But that moment stuck with me because most people don’t

realize just how easy it is to lose FSA dollars if you’re not paying attention.

So, consider this your friendly nudge before the year runs out.

FSA 101: The Quick Refresher

Most Flexible Spending Accounts, whether Health FSA or Dependent Care FSA, are

use-it-or-lose-it.

That means:

• If you don’t use the money by the deadline, it’s gone.

• Some plans offer a small rollover or grace period up to 2.5 extra months and the

ability to roll over $660 a year… but not all. And no, employers can’t give it back to you. Not even if you bring homemade cookies.

That’s why this time of year is critical. Even if you think you’ve used everything, double-

check!

If You Have a Health FSA… Now’s the Time to Clean It Out

A few smart ways to use remaining funds:

• Schedule last-minute dental or vision appointments

• Order contacts or prescription glasses

• 
  

• Stock up on over-the-counter medications

• Replace first-aid kit items

• Upgrade thermometers, heating pads, or wellness supplies

• Buy eligible items online

One of the easiest places to shop is the FSA Store, which filters for eligible products so

you don’t have to guess.

It’s basically a safety net for procrastinators… or new parents in a sleep-deprived fog.

If You Have a Dependent Care FSA… Double-Check Those Receipts

• Daycare (this is where we used our FSA dollars)

• Preschool

• Afterschool care

• Summer camps

• Babysitting (in some cases)

All of these may be eligible depending on your plan. If you’ve been meaning to gather

those statements, consider this your sign.

Why This Matters (More Than Just Avoiding a $5,000 Oops)

Money sitting in an FSA is pre-tax money which means you already saved taxes on it.

But that benefit disappears if the money disappears.

As a financial planner (and as someone who has almost donated a small used car to

the FSA blackhole), trust me when I say:

Set a reminder, check your balance, and use your dollars before the clock runs

out.

Your future self will thank you.

Your wallet will thank you.

And if you’re anything like us when Marie was born… your spouse will thank you too.