Consumers collectively forfeit over $3 billion each year in unused FSA funds to the December 31 use-it-or-lose-it deadline, but FSA education and guaranteed-eligible shopping eliminates guesswork and allows consumers to use funds wisely before they expire
DALLAS, July 10, 2025 /PRNewswire/ — The December 31 use-it-or-lose-it deadline for FSAs is just six months away, and to help more than 35 million people who are enrolled in these accounts avoid forfeiting funds to a missed deadline, FSA Store is sharing three things all FSA users should know and do now. FSA Store–the first and leading online store that exclusively sells FSA-eligible products and telehealth services–is widely known for its educational resources, interactive FSA management tools for individuals, and its guaranteed-eligible shopping experience for individuals and families. In the spirit of early education and deadline awareness, the company is sharing essential FSA facts and recommended actions with consumers.
What is an FSA? An FSA is a tax-advantaged account that consumers can enroll in through their employer-sponsored benefits program. Employees and/or employers can contribute to the account through pre-tax payroll contributions. This reduces the employee’s taxable income and helps them pay for a wide range of qualified medical expenses. FSA-eligible expenses are determined by the Internal Revenue Service.
Three things to do now to avoid forfeiting funds in December.
1. Know your deadline. All FSAs have a deadline by which funds must be spent each year. The majority of employers that offer an FSA have a December 31 deadline, which means that employees who are enrolled in the FSA may need to spend all funds by December 31. With a few exceptions, unused funds will be forfeited if not spent by this date. This December deadline is often referred to as the “use-it-or-lose-it deadline.” After this date, any unused funds are forfeited, unless your plan includes one of the following options:
- Grace period extension. Employers may opt to give employees a grace period of two-and-a-half months after their plan year deadline to spend down remaining FSA funds from the previous calendar year.
- Carryover extension. Employers may allow employees to carry over up to $660 in FSA funds from the current plan year to the next.
2. Check your FSA balance. According to the Employee Benefit Research Institute, the average FSA contribution in recent years has been around $1,300. However, approximately 50% of users forfeit at least some of their FSA funds, with the average loss totaling over $400 per person. Meanwhile, industry estimates show that FSA users cumulatively forfeit on average $3 billion each year by missing this deadline.To check your balance, log into your FSA portal or contact your plan administrator. FSAstore.com offers tools to help track spending, view deadlines, and shop confidently with zero guesswork, and 24/7 access to trained FSA customer service experts.
3. Map your spending for the remainder of 2025. The list of eligible FSA expenses has expanded in recent years to include a wide variety of clinical services, telehealth services, and an extensive list of everyday essentials and specialty items. Some of the most popular ways to spend FSA dollars include:
- High-tech devices like health and activity trackers, hearing aids, migraine relief bands, deep tissue massage guns, baby health monitors, and more.
- Telehealth services, like virtual therapy, sleep health, hormonal health, and prescription weight loss medications.
- Over-the-counter medications.
- Award-winning skincare products.
- Sunscreen, lip balms, and moisturizers with SPF.
- First-aid kits.
- Allergy medications.
- Menstrual care products.
- Drug-free pain relief products.
To help account holders maximize their tax-free funds, FSA Store offers an interactive deadline spending tool, a searchable eligibility list, product bundles, the ability to shop by price to align with their remaining funds, and much more. Consumers are also encouraged to consider FSA Store’s list of most frequently purchased products.
About Health-E Commerce
Health-E Commerce® is the parent brand to FSA Store and HSA Store, online stores that serve the 70+ million consumers enrolled in pre-tax health and wellness accounts. The company also created Caring Mill®, a popular private-label line of health products through which a portion of every purchase is donated to the Children’s Health Fund. Since 2010, the Health-E Commerce brands have led the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce plays an essential role in expanding product eligibility for important new products and telehealth services within the list of eligible medical expenses.
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SOURCE Health-E Commerce
