Here's how to use your FSA funds before you lose them

"Sometimes, employers will provide grace periods of up to two and a half months past the end of the year to allow for extra time to use your FSA funds. Others may allow you to carry over up to $660 per year. But 33% of employers have a hard deadline, so if you don't use your funds by the end of the year, they're gone."

"In general, experts say this is because many Americans don't know of the deadline. "People tell us one of the main reasons they forfeit FSA funds is because they aren't aware that they have a deadline in the first place, or they don't know how much they have left in their account," says Rachel Rouleau, chief compliance officer for Health-E Commerce, the parent company of the FSA Store, per CNBC."

Flexible spending accounts let employees set aside pretax money for healthcare costs including copays, some medications, and deductibles. Employer policies vary: some offer grace periods up to two and a half months, others allow carryovers up to $660, and about 33% enforce a hard year-end deadline. In 2023 roughly half of FSA holders forfeited funds, with an average forfeiture of $436. Many account holders do not realize they face deadlines or do not track remaining balances. Eligible purchases are broad and include baby care items, skincare, high-tech health devices, telehealth services, and acne medication. Average household FSA-eligible spending is estimated at $1,600 annually.

Read at Fast Company