Useful year-end tips to spend down health and childcare FSAs 

If you have a flexible spending account (FSA) or a dependent care FSA, you know these plans are a great way to save on everyday expenses for your family.

But many plans follow a “use it or lose it” policy. This means that any unused money in your accounts may expire at the end of the year. With December speeding by, now's the time to make sure you’re getting the most out of your benefits.

Here are smart tips to spend down your flex balances before it’s too late.

Using health FSA funds

Stock up on over-the-counter items

You can use your Health FSA to buy many things commonly found in your medicine cabinet or first aid kit. Items that qualify include:

• Bandages, knee or wrist braces and other supports
• Contact lens solutions and cleaners
• Thermometers, blood pressure monitors, and pulse oximeters
• Skin care such as sunscreen or acne products
• Heating pads or ice packs for aches and injuries
• Allergy medications, cold medicines like decongestants and cough supressants, and other over-the-counter meds
• Feminine hygiene products such as pads and tampons
• Prenatal vitamins or other supplements (some may need a doctor's note for reimbursement)

Unsure if something is eligible for flex spending? Try shopping at an FSA store. These online shops stock and categorize eligible items to make browsing easier. Some also offer year-end sales to help maximize your spending. 

Want to use flex funds at your usual stores? You can set filters for FSA-eligible items online at retailers like CVS, Walgreens, Walmart, Target and Amazon.

Schedule last-minute medical, dental or vision care

Need an eye exam, dental checkup or update to your vaccines for cold and flu season? These appointments not only benefit your health but also can help you spend your remaining FSA money.

Time is running out to book appointments for medical, dental or vision care, though.

• If you have a visit scheduled, don't forget to use your flex funds to pay the deductible and/or copay.
• If you're due for services, see if you can book now to be seen before the end of the year. No openings? Ask to get on your provider's cancellation list for a last-minute visit.

Cover prescriptions, co-pays and deductibles

If you have upcoming or recent medical appointments, use your Health FSA to pay for co-pays and deductibles. 

You can do this for specialist visits like dermatology or heart care. You can also use your FSA for urgent care or emergency room visits, and for preventive care with your PCP.

If you take prescription medications, now is also a good time to refill them and use your FSA to cover your part of the cost. The same goes for medical equipment prescribed by your doctor. This includes things like CPAP machines, walkers, crutches, wheelchairs and oxygen machines.

Using dependent care funds

Get reimbursed for past childcare expenses

If you’ve already paid for childcare services this year, make sure to get reimbursed.

If you enrolled in a spring break sports camp, or dropped the kids off for a parents' night out at your daycare back in May, those expenses are eligible. 

You can submit receipts for things like:

• Babysitter fees while you worked or searched for a job
• Daycare or preschool tuition
• After-care programs

Plan for future childcare

Holiday events and winter break are coming right up. Why not use your dependent care funds to keep the kids occupied all the way through New Year's Eve? Eligible items include:

• Day camps for art, sports or other enrichment activities
• Fees for school-based before- or after-care programs

Use flex funds for elder care

Dependent care FSAs aren't just for kids. If you support an older adult who qualifies as a dependent, you can use FSA funds for:

• Adult daycare services
• In-home care providers for things like meal preparation or light housekeeping
• Transportation to and from care services

Helpful year-end reminders

By acting now, you can make the most of your health and dependent care FSA balances.

• Check your deadlines: Most FSAs require you to spend down your account by Dec. 31. But some plans offer grace periods or allow a small amount to carryover into the next year. Check with your plan administrator to see if this applies to you.
• Submit receipts on time: Make sure you have all the receipts you need and submit your claims before the deadline. Missing this step could mean you lose any money remaining in your account.

Have questions about what’s eligible? Check with your benefits administrator or visit the IRS website for a full list.

Whether you’re restocking the medicine cabinet, booking a doctor visit or paying for childcare, you can feel confident that you've put every flex dollar to good use.