NBC CT Responds

Don't Lose Out on Your Hard-Earned Cash as FSA Deadline Looms

NBC Universal, Inc.

Time is ticking to use your flexible spending funds.

Every payday, millions of workers put money into their accounts to pay for certain out of pocket health expenses, but many don’t spend it and each year billions of dollars are given up.

It’s a wise investment to put tax free cash into your flexible spending account, so don’t lose out on it.

While FSA rules vary company to company, some say use it or lose it by December 31.

So, check your balance ASAP and take action.

The Employee Benefit Research Institute estimates that almost half of participating workers forfeit almost $370 each.

Some company plans do allow a grace or rollover period, so check with your human resources representative.

But either way, make sure to check your balance and strategize your spending.

Spending FSA money is relatively easy.

You can stock up on everyday items like bandages, pain relievers, and COVID-19 test kits too.

Check out websites like FSAStore.com.

Many online sites like Amazon and CVS have a filter that shows FSA eligible items.

In stores, look for an ‘FSA eligible’ label shelf tag.

But experts warn about buying an item in bulk to drain your balance, like an entire pallet of sunscreen, for example.

“Technically, what’s an allowable expense is what you could reasonably consume in a short amount of time. So, if you were to buy an entire pallet of sunscreen, that might raise a flag or two at the IRS,” explained Jake Spiegel with the Employee Benefit Research Institute. 

So where does the FSA money go when folks forget to spend it?

Spiegel says generally the money is no longer yours and goes back to your employer…probably not where you want your hard-earned cash to end up.

Chris Chmura and Alyssa Goard contributed to this article.

Contact Us