Don’t Let FSA Money Vanish Over the Holidays — Simple Ways to Use It on Travel and Health Needs

Why the December deadline matters for holiday travelers

The end of December is more than a calendar milestone for many people. If you have a flexible spending account, or FSA, with your employer, unused money can disappear when the plan year ends. That means funds set aside tax-free for health and medical needs could be lost if you don’t spend them in time.

For people traveling during the holidays, that’s important. Holiday trips bring crowded airports, tight schedules, and a higher chance of minor injuries or illness. Using leftover FSA dollars to buy useful travel and health items lets you protect your health while keeping more of your paycheck from being taxed.

How FSAs work and what counts as an eligible expense

An FSA is an employer-run account that holds money you put aside before taxes. Employers often let you withdraw the funds with a special debit card, or submit receipts to get reimbursed. The tax benefit comes because you don’t pay income tax on the money you contribute, which lowers your taxable income.

Not every purchase is allowed. Eligible items must be for medical care or to treat or prevent illness. Common qualifying things include bandages, over-the-counter medicines with a prescription or eligible labeling, first-aid supplies, and some personal protective equipment. Many retailers sell items labeled as FSA-eligible, and stores that focus on these products can make it easier to find qualifying goods.

Most FSAs are offered through employers, not bought directly by individuals. That means plan rules vary. Some employers set a strict year-end deadline tied to the calendar year. Others use a plan year that could end on a different date. Always check your employer’s plan details to know the cutoff for spending and claiming funds.

10 FSA-eligible items to consider for holiday travel

Below are practical items commonly listed as FSA-eligible that can be useful during travel. Each entry explains why it helps on the road and what to check before buying.

1. Travel first-aid kit — Small kits with bandages, antiseptic wipes, and gauze are handy for cuts or blisters. They’re classic FSA-eligible items and save you from hunting for supplies in a rush.
2. Pain relievers and fever reducers — Over-the-counter medicines such as acetaminophen or ibuprofen usually qualify. Keep travel-size packs for headaches, fever, or muscle aches that can ruin a trip.
3. Motion sickness remedies — Tablets, patches, or wristbands for motion sickness are commonly eligible and can make long drives, ferry rides, or choppy flights tolerable.
4. Cold and flu treatments — Eligible items include decongestants, throat lozenges, and saline nasal sprays. winter travel often increases exposure to germs; these supplies let you treat symptoms fast.
5. Thermometer — Digital thermometers are usually covered. A quick temperature check helps you decide whether to rest, seek care, or delay a plan.
6. Hand sanitizer and sanitizing wipes — Many plans accept hand sanitizer and antiseptic wipes, which can reduce germ spread on planes, trains, and in hotels.
7. Compression socks — For long flights, compression socks that help circulation are often eligible. They can cut the risk of swelling or discomfort on overnight trips.
8. Travel-sized prescription refills — If you need more of a prescription medicine during a trip, refills and travel packs that you buy with your FSA can use up remaining funds.
9. Burn and blister care — Specialized bandages and topical treatments for blisters or minor burns are usually eligible and useful for walking-heavy holidays.
10. Sleep aids (eligible types) — Certain over-the-counter sleep aids or devices that have a clear medical purpose can qualify. They help when you need rest after long travel or time changes.

Note: Not every product marketed for travel is FSA-eligible. Cosmetic items, general toiletries, and many convenience products typically do not qualify. Look for clear FSA eligibility labeling or check with your plan.

Timing rules, grace periods and receipts to keep

Plan details determine whether the December 31 date applies. Some employers use the calendar year, which makes December 31 the final day to spend. Others have different plan years. A few employers offer a short grace period after the plan year ends or let you carry a small amount into the next year, but that’s not universal.

Keep records. If you pay with an FSA card, save receipts in case your plan asks for proof. If you submit claims for reimbursement, follow your plan’s substantiation rules and deadlines. Without the right paperwork, your claim could be denied and the money lost.

How to check eligibility and shop smart at the last minute

Before you buy, take three quick steps: check your plan’s deadline and rules, confirm the item is labeled FSA-eligible, and keep the receipt with product details. If you use an FSA card, the purchase may go through automatically if the merchant codes the item correctly — but plan administrators can still ask for documentation later.

Avoid common traps: don’t assume everything in a travel or pharmacy aisle counts; choose products that clearly state medical use; and be cautious about bundled items that mix eligible and non-eligible parts.

Where to buy and who to call for questions

You can shop at pharmacies, medical supply stores, and retailers that specialize in FSA-eligible goods. Many such stores clearly mark eligible items. Your employer’s plan administrator is the final word on what your plan will accept, so call or email them if you’re unsure.

For busy travelers, set a simple reminder: check your FSA balance and plan deadline early in December, then prioritize medical and travel items that meet your needs. That way, your unused money can do the work it was set aside for — keeping you healthier and spending less from your regular pay.

Sources

• prnewswire.com