Don't throw away money. What to do with your FSA at the end of the year

Is your health care flexible spending account balance burning a hole in your pocket? Don't rush to spend it just yet.

The accounts, known as FSAs, allow you to set aside pre-tax income to spend on qualified medical purchases. That includes doctor's bills, co-pays and prescriptions — as well as many over-the-counter medications and other health-adjacent goods. (An FSA is different from a health savings account, or HSA. If you have one of those, the balance can be rolled over to the next year.)

The maximum you could set aside for an FSA in 2021 was $2,750. Most years, you can only roll over some of that balance to the following year. If you didn't end up having many medical bills that year, December sometimes winds up being a hustle to spend the rest. Workers who forget wind up forfeiting an estimated $400 million a year collectively.

But this year, things are different. Congress changed the rules for 2020 and 2021 under the assumption that some people may have skipped or delayed health care visits on account of the pandemic. If your workplace opted in, you may be able to roll over your entire balance to 2022. Contact your benefits provider or human resources department and ask whether your employer is participating.

If they aren't, there are lots of ways to use up your FSA balance. Pharmacies like CVS and Rite-Aid allow you to use your FSA card just like a debit card. You can also use your card to buy eligible items online.

Lots of sites have a page dedicated to covered supplies, including Amazon, Target, Costco, CVS, Rite-Aid, Walgreens and Walmart. There's also FSAStore.com, which only sells FSA-eligible things.

Here are some of the items you might not have realized were FSA-eligible:

-COVID supplies: masks, hand sanitizer, thermometers, pulse oximeters and at-home COVID tests.

-Eye care: Prescription glasses, contacts and eye exams, including online.

-Menstrual supplies: Thanks to the 2020 CARES Act, pads, tampons and other period products are now eligible.

-Family planning items: Condoms and emergency contraception both qualify.

-Over-the-counter medications and monitoring equipment: ibuprofen, acetaminophen, certain vitamins and supplements, antacids, pain relief gels and pads, and more.

-Baby, pregnancy and postpartum supplies: Many breast pumps and breastfeeding supplies, and even some fancy optional baby supplies like the Owlet monitoring system.

-Sunscreen and skin care: Many acne treatments, eczema creams and sunscreens.

-Others: Blood pressure monitors, first aid kits, diabetes care supplies, massagers, smoking cessation aids, home drug tests and mobility aids like canes and wheelchairs.