Written and medically reviewed by Dorcas Morak, Pharm.D
As year-end approaches, it’s essential to recognize that how you plan for your Flexible Spending Account (FSA) or Health Savings Account (HSA) varies by account type. Understanding these differences helps you maximize your savings and avoid leaving money behind.
Key 2025 Deadlines to Remember
- FSAs: Most FSA expenses must be incurred by December 31, 2025. Some employers allow claims into early 2026 (commonly through March 15 or March 31). Purchases after December 31 usually don’t qualify.
- Carryover: Many plans allow up to $660 to roll over into the following year. Anything above that is forfeited if not used.
- HSAs: No spending deadline. Funds roll over and can grow year after year. Reviewing your account before December 31 still helps ensure you’re capturing eligible expenses and maximizing contributions.
What’s Eligible for FSA or HSA Spending?
You may be surprised at how many healthcare costs qualify: Prescription Medications
- Chronic conditions: atorvastatin (cholesterol), lisinopril (blood pressure), metformin (diabetes).
- Mental health: fluoxetine (depression), sertraline (anxiety).
- Asthma & respiratory: albuterol inhalers, fluticasone (Flovent).
Dental Care
- Routine cleanings, x-rays, fillings.
- Orthodontics such as braces and Invisalign.
Vision Care
- Eye exams, contact lenses, lens solution, prescription glasses, frames, and LASIK.
Over-the-Counter (OTC) Medications
- Pain relievers: acetaminophen (Tylenol), ibuprofen (Advil).
- Allergy relief: loratadine (Claritin), cetirizine (Zyrtec).
- Cold/flu treatments: guaifenesin (Mucinex), dextromethorphan (Robitussin), zinc lozenges.
Medical Devices & Supplies
- Blood glucose meters and strips (e.g., OneTouch).
- Blood pressure monitors (e.g., Omron).
- First aid kits, thermometers, heating pads, and crutches.
Year-End Planning Tips
- Check your balance Log into your FSA or HSA dashboard and note what’s left. Schedule dental, vision, or specialty visits you’ve been delaying (eye exam, skin check, dental x-rays).
- Refill & restock your medicine cabinet Buy OTC medications and supplies you regularly use before December 31 if you’re spending down an FSA.
- Ask your prescriber for a 90-day supply Many plans allow 90-day fills. Use the RxLess® Assurance Plan Real-Time Price Finder to instantly compare prices at 70,000+ pharmacies nationwide and stretch your pre-tax dollars further; use the days supply filter to get the most accurate information.
- Save receipts & file claims early Scan or snap photos of itemized receipts, Explanation of Benefits (EOBs), and prescriptions. Submitting claims promptly avoids last-minute stress.
- Consider larger services FSA dollars can go toward big-ticket eligible items like orthodontics, LASIK, or physical therapy. Planning now helps you maximize tax-free savings.
Contribution Basics for 2025
- FSA contributions: Up to $3,300 per year (most plans), with up to $660 eligible to roll over if your employer allows.
- HSA contributions: Up to $4,300 individual / $8,550 family annually, plus an extra $1,000 catch-up if you’re age 55 or older.
- Tax benefits: Both accounts reduce taxable income, but only HSAs are “triple tax-advantaged” (tax-free contributions, growth, and withdrawals for medical expenses).
- Enrollment: You elect your contribution amounts during your employer’s open enrollment period. Changes outside of this window usually require a qualifying life event (marriage, birth, job change).
Bottom Line
FSAs and HSAs are powerful tools to cut healthcare costs, but they require year-end attention. FSAs operate under “use-it-or-lose-it” rules, while HSAs build long-term value. By planning ahead, scheduling care, and using the RxLess® Assurance Plan to stretch prescription dollars, you’ll ensure that none of your hard-earned money goes to waste in 2025.
