There's Less Than 3 Months to Use Up Your 2023 FSA. Here's How to Put That Balance to Good Use

When it comes to socking money away for healthcare expenses, you have choices. You could put cash into a savings account. Or you could open a flexible spending account (FSA) through your employer.

The upside of using an FSA is that you get a tax break on the money you contribute. So pumping $1,000 into an FSA means not paying taxes on that much of your earnings.

The downside of FSAs, though, is that these plans generally require you to use up your plan balance by the end of the year. If you don't, you risk giving up money that came out of your paychecks.

Some FSAs are a little more flexible than others. If your plan has a grace period, you may have until mid-March of 2024 to use up your balance. You may also be allowed to carry up to $610 into 2024.

But again, your plan has to allow for one of these options, and it's not required to. So you may now be in a position where you have less than three months to put your remaining FSA funds to good use. If you're not sure how, here are some options.

1. Push up medical appointments scheduled for early 2024

Maybe you're planning to see your gastroenterologist or ENT in January or February. If you can get an appointment for December, you can dip into your FSA to cover your copay. Plus, your specialist may want to send you for follow-up tests or treatment, so if that happens this year, you can use your FSA for that as well.

2. Renew prescriptions early if you're eligible

Some people take prescriptions on an ongoing basis. If you're able to renew some of your pills in late 2023 instead of early 2024, you can pay for them out of your FSA. Just make sure your insurance company will allow you to do so, as insurers tend to have a waiting period between refills.

3. Tackle the dental work you've been putting off

FSA funds can be used to cover dental care that isn't solely cosmetic in nature. So while a teeth whitening treatment generally isn't eligible, a root canal is. If you've been putting something like that off, now's the time to schedule it.

4. Get that orthodontist consult for your child

The idea of having to pay for braces for a child can be overwhelming. So if you're able to at least use your FSA to cover the cost of your consultation, you might as well.

If your dentist has told you to get your child over to an orthodontist at some point in the not-so-distant future, now's a good time to get the ball rolling. And if you want one of those coveted appointments during winter break so you don't have to pull your child out of school, call now.

5. Buy a spare pair of glasses or extra contacts

Glasses have the potential to break, and contact lenses can pretty easily get lost or ripped. If you rely on glasses or contacts to see, why not buy some spares using your FSA balance? You can even purchase sunglasses with an FSA as long as your lenses are prescription.

6. Stock your cabinet with eligible over-the-counter medications and supplies

Bandages. Sunscreen. Contact solution. These are all things many people keep on hand for when they need them. The good news is that there's a host of over-the-counter medications and supplies that are FSA-eligible. Take inventory at home and restock the items you're getting low on. And if you're not sure exactly which purchases qualify, you can find a comprehensive list at fsastore.com.

The money in your FSA is money you didn't receive in your paychecks, so it's important to make sure it doesn't go to waste. These are all good options to consider as we approach the end of the year.