Did you sign up for the military’s new Health Care Flexible Spending Account option for 2025? If so, you may have some money that you need to spend before the end of the calendar year. Since this is the first year for the Pentagon’s HCFSAs, a lot of people may not know about the use-or-lose provisions.
The Department of Defense made HCFSAs available to service members beginning in March 2025. Flexible spending accounts are tax-advantaged accounts that allow you to put pre-tax income into an employer-sponsored account, and you don’t pay taxes if it is used for eligible expenses. They’re a great tool, saving you federal, state, Social Security and Medicare taxes.
Sounds amazing, right? They are amazing. But there’s a catch: FSAs are (generally) use-or-lose accounts. That means that if you don’t spend all the money you contribute to your FSA, you lose it. Some exceptions are allowed by law, and the military’s HCFSA rules include an exception to allow you to carry over $660 per year. But if you have more than $660 in your DoD HCFSA on Dec. 31, 2025, the remainder goes away.
So, let’s spend it! Thankfully, you have plenty of ways to spend HCFSA money on eligible expenses. Here are some strategies to consider:
Move Up Spending
Do you have any health care spending planned for 2026 that you could do (or pay for) in 2025? The most obvious idea is to pay for your January payment on an orthodontics payment plan. Care must actually be active. You can’t pay for care that you’re going to get in the new year. Other ideas include squeezing in some chiropractic care, massage therapy, dental care or new glasses or contacts.
Stock Your Medicine Cabinet
Most of the common over-the-counter medicines and medical supplies are eligible for FSA money. This includes, but absolutely is not limited to:
- Allergy medications
- Pain relievers
- Antibiotic ointments
- Antacids
- Bandages
- Condoms and other birth control
- Contact lens solutions
- Diabetic monitors and test kits
- Diaper rash ointments
- Pregnancy tests
- Sunscreen SPF 15+, including SPF lip balms
Figure out how much you’ll use before it expires, and fill that cupboard!
Go Back and Claim Mileage
Your HCFSA will pay you mileage for transportation to and from medical appointments. If you haven’t taken advantage of this benefit, go back and make a claim for appointments you had earlier in the year. This includes medical care, vision care and dental care. Mileage can really add up!
Get in the Giving Spirit
Shelters and food banks are always looking for feminine hygiene products (pads or tampons are authorized, but not wipes or sprays), hand sanitizer, adult incontinence supplies such as Depends, and basic medical supplies. This can be a great way to spend your money and give back to the community at the same time.
The FSAFEDS.gov website includes a searchable, comprehensive list of expenses that are eligible for FSA reimbursement. If you’re not sure what to do with your HCFSA money, take a look at this list. If you have an idea of what you’re going to buy, check the list to make sure the item is listed.
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