LAS VEGAS (KTNV) — If you're scrambling to wrap up your holiday shopping, you may also be racing against another end-of-year deadline: using the money in your Flexible Spending Account before it disappears.
Millions of Americans contribute pre-tax dollars to FSAs to help pay for health-related expenses. But each year, an estimated $4 billion goes unused, according to consumer benefits expert Nick DiMauro. That breaks down to roughly $400 per person, money that simply vanishes if it isn’t spent by Dec. 31.
Shakeria Hawkins shows us how to avoid leaving those dollars on the table.
Many shoppers don’t even realize the deadline is approaching.
“The funds in your account expire in two weeks. Did you know that?" Hawkins asked one shopper.
“No… I didn’t know that,” he said.
Some consumers, like 87-year-old Mimi Williams, say they refuse to leave money behind. Williams uses her FSA dollars to stock up on vitamins and other everyday essentials and is often surprised by how many items qualify.
“You don’t think healthcare would cover so much,” she said.
Experts say a big reason so much money goes to waste is that people forget to check their balances, miss the deadline, or assume FSAs only cover doctor visits or prescriptions.
In reality, hundreds of everyday health items are eligible—including over-the-counter medications, first-aid supplies, glasses and contacts, and certain medical equipment.
DiMauro urges families to make a smart spending plan instead of panic-buying.
“Sit down with your family and figure out what you’ll actually need over the next 12 months,” he said.
With less than two weeks left in the year, consumers are encouraged to log into their accounts, review eligible expenses, and use their funds now, before they disappear for good.
