How to Use Up Leftover Money in Your Flexible Spending Account

Flexible spending accounts (FSAs) allow you to set aside pre-tax funds to cover healthcare costs, and there are dependent-care FSAs, too. That untaxed money can help to defray the costs of medical care or caring for a dependent.

Unfortunately, money generally must be used by the end of the calendar year with most FSA plans. Your employer can offer you up to 2 1/2 extra months to use the money, or let you carry over as much as $500 into the following year. But plans can't offer both features, and not all offer either one. Even if they do, the time you have left to use your funds may still be running short.

If you find that you have only a limited amount of time to use FSA funds, you definitely don't want to just let the money disappear. But what should you do to ensure you're using the dollars set aside for your care?

Source Fool.com