How to use your flexible spending account (FSA)

How do I use my FSA funds?

An FSA is a great way to lower your health costs since you don't have to pay taxes on the money you contribute. But learning how to use an FSA can be confusing at first. Here's what you need to know about redeeming your flex spending money so it doesn't go to waste.

How an FSA works

A flexible spending account (FSA) lets you use pre-tax wages from your job to pay for certain health-related costs throughout the year. The money can be deducted from your paychecks depending on how much you decided to set aside.

You usually decide your contribution amount during your employer's open enrollment period, or during a qualifying life event (like getting hired or having a baby).

Each employee can contribute up to $3,300 in 2025, but you can add less if you want to.

What to do before you use FSA money

First, double-check a few important details to help avoid a costly mistake:

Check your FSA balance

Spending more money than you have in your account can lead to unwanted surprise bills. Your FSA administrator should give you more than one way to check your balance, such as:

• Online account portal
• Mobile app
• Paper or email account statements
• Customer service phone number
• Online chat support

Know your plan's deadline

Most FSAs have a "use-it-or-lose-it" rule. In other words, you'll lose any money that's still in your account on the first day of the following plan year. This is usually January 1 of the next year, but your employer can also pick a different start (and end) date for the plan year.

However, some plans may include one of these two options (but not both):

• Grace period – This gives you up to two and a half more months to spend your FSA dollars (usually around March 15 of the following year).
• Carryover – In 2025, a carryover allows you to roll over up to $660 of leftover funds into your 2026 FSA.

Make sure it's FSA-eligible

One of the most important steps in learning how to use FSA funds is knowing which expenses are FSA-eligible and which aren't.

Some of the most common ways to spend FSA money include:

• Doctor visits (including comprehensive eye examinations and dental checkups)
• Prescription and nonprescription medicine
• Medical equipment for a health condition
• Prescription eyeglasses and contact lenses, and over-the-counter reading glasses
• Medical procedures (including vision-correcting surgeries like LASIK)

Some items in these categories may not qualify, so it's a good idea to check your FSA website or documentation to make sure an expense is eligible.

The Internal Revenue Service (IRS) decides which items qualify for FSA use. Your account provider or human resources department can provide an up-to-date list of eligible medical expenses.

READ MORE: What's the difference between an FSA and HSA?

How to spend your FSA money

There are two main ways to use an FSA: Use your FSA debit card or use your own money then get reimbursed afterward. Some account providers also offer other ways to pay, but these aren't as common.

Option 1: Use your FSA debit card

Your FSA administrator will probably send you a benefit card tied to your account balance. This unique debit card lets you use your flex spending money to pay approved merchants, doctor's offices and other providers directly.

It can be tempting to swipe your card and throw away the receipt, but hold on to it anyway. Your FSA provider may ask to see it before they approve the purchase.

Option 2: Submit a reimbursement claim

You can still use FSA money if you pay out-of-pocket with personal funds, but you'll need to submit a reimbursement claim.

The reimbursement process can vary, but you'll generally follow these steps:

1. Fill out the claim form (online or on paper) with details about the eligible expense. You'll be asked to add information such as the cost, date of service and type of expense. Check with your employer or FSA administrator if you aren't sure where to find the reimbursement form.
2. Attach the itemized bill or other documentation that shows proof of the expense.
3. Submit the claim on your FSA website or app, or by email, mail or fax.
4. Receive a check or direct deposit that reimburses you with money from your flex spending account.

It can take up to a few business days to process your claim. You should get paid shortly after it's accepted.

7 common FSA spending mistakes

It's easy to miss a detail or two when you spend your flexible spending account money​. You might even forget to use it at all.

Try to avoid these seven common mistakes:

1. Missing the spending deadline – You won't be able to use FSA money on any purchases made after 11:59 p.m. on December 31 (or a little longer if you have a grace period). Set reminders on your deadline day — and well in advance — to make sure you don't lose the remaining funds forever.
2. Missing the deadline to submit claims – There's also a deadline to submit your claims for reimbursement (sometimes called a "run-out" period). It's usually about 90 days after the spending deadline, but check with your provider for the exact date.
3. Spending money that isn't FSA-eligible – You may be able to return some ineligible items, but you usually can't get a refund for appointments and procedures. Check with your providers ahead of time to ensure you'll be reimbursed for the purchase.
4. Losing track of receipts or invoices – Keep all itemized invoices, receipts and bills for your expense. This also applies when you use an FSA debit card since your provider might ask to see documentation later.
5. Leaving your FSA card at home – You can always file a reimbursement claim, but it's one more easy-to-forget task on your to-do list. Your FSA provider may let you order extra debit cards if you have a spouse or dependent who also uses the funds.
6. Adding incorrect details to reimbursement claims – Your claim will probably get denied if you submit forms with wrong or missing information. You should still get a chance to resubmit the claim, but you'll miss out on reimbursement if you forget.
7. Not knowing about a grace period or carryover – Some employers may give you up to two and a half extra months to spend FSA dollars. Other employers may let you carry over up to $660 into 2026. Knowing these features can maximize your pre-tax contributions and prevent "panic buying" at the end of the year.

Don't let your FSA dollars go to waste

Waiting until the end of the year to spend FSA money can quickly lead to buying things you don't need, or worse — forgetting about the funds altogether.

Understanding how to use a flexible spending account may seem complicated at first, but you'll get the hang of it after a few successful claims.

Take some time to think about the things you'll need throughout the year. From routine eye exams and annual physicals to prescription sunglasses and contact solution, there are hundreds of ways to use your FSA.