When it comes to saving money for various things, the more tax breaks you can snag in the process, the better. This holds true whether you're saving for retirement or near-term healthcare expenses.
Traditional IRAs and 401(k)s, for example, allow you to score an up-front tax break on the money you contribute. FSAs, or flexible spending accounts, work similarly to IRAs and 401(k)s -- only with an FSA, you're not saving that money for retirement.
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In fact, you can't save your FSA for retirement because these accounts typically require you to spend your balance by the end of the calendar year or risk forfeiting whatever money remains. Some FSAs do offer a small grace period. But ultimately, you have a limited window of time to use up your money.
If you want the option to carry healthcare savings into retirement, you'll need to choose an HSA over an FSA. But not every health insurance plan is compatible with an HSA, so an FSA may be your best bet.
Meanwhile, now that we're getting closer to the end of 2025, it's important that you try to use up your FSA balance before the year ends. You don't want to risk forfeiting any money you allocated to your FSA, so you may want to consider stocking up on some key items you can use during the year.
Here are a few that qualify for an FSA that may surprise you.
1. Allergy medication
Are you someone with perpetually itchy eyes in the spring and a permanently scratchy throat in the fall? If so, you probably take your fair share of allergy medication.
The good news is that over-the-counter allergy medication qualifies for an FSA. So do many other types of over-the-counter pills, like pain relievers.
Go through your medicine cabinet at home and see what you're missing. Then, try to use your FSA to restock. Just pay attention to expiration dates, and try to get the best ones possible.
2. Sunscreen
Whether you're a beach lover or burn easily just about anywhere, sunscreen is one of those things you might go through more often than expected. You should know that sunscreen is an FSA-eligible expense, so you might as well stock up for next summer if you have the funds sitting in your account.
That said, sunscreen, like medication, has an expiration date too. Pay attention so you're buying stuff that will last.
3. Contact lens solution
You may be aware that contact lenses can be purchased using FSA dollars. But so can the solution you need to keep them clean. Contact lens solution does expire. But as long as you pay attention to dates, you can work around that.
4. Heating pads
Sore muscles can be a drag. And while pain relief medication can help, sometimes the best treatment is a nice, warm heating pad. If yours has seen better days, use your FSA to spring for a new one.
5. Ovulation kits
Trying to conceive? Your FSA has you covered. You can use the money in your FSA to purchase ovulation kits -- an item you may end up needing repeatedly during your fertility journey.
Know your FSA inside and out
These five items are only some of the products you can use FSA funds to purchase. If you have leftover money to use up by Dec. 31, check your plan's rules to see what expenses qualify.
And remember, if you don't need your entire FSA balance for yourself, you can always see if a local shelter could use items like feminine products or other care items for children. Donating these items is a great way to put your money to good use and avoid losing it.
