FSA money expires: at the end of the year or grace period, leftover funds are lost, per HealthCare.gov.
First check your plan's softener: a grace period of up to two and a half months or a carryover of up to $660, one or the other, employer's choice, or neither. Then spend on real needs: overdue dental, eye, and skin appointments, since FSAs cover deductibles, copays, and coinsurance; new glasses or contacts; prescription refills; and eligible everyday items like first-aid supplies, sunscreen, and pain relievers. Do not panic-buy junk, and check eligibility lists first. Next enrollment, contribute only what you will realistically spend.
What to do
Common questions
How do I use my FSA before it expires?
Move fast, because FSA money is use-it-or-lose-it: HealthCare.gov warns that at the end of the year or grace period, you lose any money left over in your FSA. First, check your deadline math, because your plan may soften the cliff: your employer can offer a grace period of up to two and a half extra months to spend the money, or allow you to carry over up to $660 into the next year, but not both, and your employer does not have to offer either, so your HR portal or benefits office has the real answer. Then spend strategically on things you actually need: book the appointments you have been putting off, since FSA money pays for deductibles, copayments, and coinsurance, so overdue dental cleanings, eye exams, and dermatology checks all qualify; get new glasses or contacts, a classic December purchase; refill prescriptions ahead where allowed; and stock up on eligible everyday items like first-aid supplies, sunscreen, contact lens solution, pain relievers, and period products. Do not panic-buy things you will never use, and check the eligibility list before a big shop. For next year, HealthCare.gov's advice: do not put more money in your FSA than you will spend within a year.