Rushing to spend your FSA dollars before year end? You may not need to. Find out in this blog post by Aspyre Wealth Partners®  Lead Financial Planner and Money Boss Mom, Jamie A. Bosse, CFP® , RFC.

Healthcare Flexible Spending Accounts (FSAs) are known for being “use it or lose it” type accounts. In typical years, if these funds are not used up by December 31st, they are forfeited. Some employers offer a two-and-a-half-month extension to use the funds, and many allow you to roll over a maximum of $550 to next year.

For 2020 and 2021 as a part of the Covid-19 relief legislation, employers can elect to allow employees to roll ALL remaining funds to the following year. So, you may have dollars in your FSA from 2020 still unused and/or you may be able to roll all your leftover 2021 funds for use in 2022.


Here’s what I suggest:

Find Out What You Have.

Look at your total balance and ask HR how much of those dollars are from 2020 and how much is from 2021.


What Will Roll Over?

Find out what your employer will allow to roll to next year.


Spend What Will Expire.

If some or all your funds won’t be rolled over, find a way to use them now.  Stock up on commonly used items or pick up prescriptions early.

If you have money you need to burn by December 31st, you can buy a new pair of glasses, stock up on over-the-counter medicines, feminine products, or even sunscreen.  Kroger, Amazon, and Wal-Mart all have “FSA Shops” on their websites where you can search for eligible items.  Many stores like Target, list healthcare eligible items near the bottom of the receipt, so don’t forget to look there and turn it in for reimbursement!


Here are some other eligible items you could shop for:

  • Pain medication
  • Menstrual Hygiene items (became eligible in 2020)
  • First aid kits
  • Prenatal vitamins
  • Heating pads
  • Baby monitors
  • Thermometers
  • Condoms
  • Contact solution
  • Pregnancy tests
  • Sunscreen
  • Face masks

The maximum salary deferral for 2021 is $2,750.  For 2022, that number is increasing to $2,850.  Be sure to set your elections according to what you usually spend on healthcare expenses for the year.

Don’t let these dollars go to waste!  Have a Happy and Healthy New Year!


Jamie A. Bosse  is a Certified Financial Planner professional at Aspyre Wealth Partners® and a board member of the Financial Planning Association of Greater Kansas City. For help with your specific situation contact Jamie at

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