FSAs (Flexible Spending Accounts) often allow you to set aside up to $5,000 pretax for medical expenses. While this can be a great way to help reduce medical costs throughout out the year, most companies also require that you use those funds by December 31st.
Some companies may give you a grace period until March 15th, so check with your employer if you're not sure. However, if you simply forget about your FSA and fail to clear account your account by the deadline, it will reset in the new year and your hard-earned cash will be gone for good. Don't let that happen!
Instead, head to your local drug store and stock up on contact lens solution, fill the prescription that's been sitting on your desk for the last month, or go fit another teeth cleaning in before the end of the year. Just make certain your FSA's balance is zero by the time the ball drops in Times Square.
