Year-End FSA Tips: IRS Has Expanded Eligible Purchases You Didn’t Know About

As the year comes to a close, many Americans with Flexible Spending Accounts (FSAs) face a common problem: what to do with leftover funds before they disappear.

Most people know FSAs cover doctor visits, prescriptions, and basic medical supplies—but the list of eligible items is much longer than you think.
 

More Than Just Medical Visits

FSAs operate under a "use it or lose it" rule, unless your employer offers a carry-over or grace period.

Confusion about what qualifies leads millions of dollars to go unspent each year.

According to a 2024 FSA Store analysis, many people simply aren’t aware of what they can buy with their FSA dollars.
 

Surprising Items You Can Buy

The IRS has expanded eligible FSA purchases, so everyday health and wellness items now qualify. You can use your funds on things like:

• Menstrual care products and SPF sunscreen

• Motion sickness aids and first-aid supplies

• Baby thermometers and heating pads

• Many over-the-counter medications without a prescription

Families managing recurring health needs can especially benefit from these rules. Smart shoppers check FSA vendor lists or online guides to plan purchases before the December deadline.
 

Making the Most of Your FSA

FSAs aren’t just for emergencies. They’re perfect for predictable expenses like allergy medicine, diabetes supplies, or corrective eyewear.

Some employers even allow up to $640 to carry over into the new year, while others offer a short grace period, so reviewing your company’s rules is key.

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