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Reindeer Year-end Tax Tip Games 2012: Dasher says use up your FSA funds

December 13, 2012

Christmas is less than two weeks away, so Santa and his elves are working furiously to make every boy's and girl's dreams come true.

But his trusty reindeer get to cool their heels in their North Pole barn until Dec. 24.

Santa reindeer barn via Santa Claus-dot-netReindeer barn image courtesy SantaClaus.net

That means they still have some time on their hands hooves.

So they've graciously agreed to help deliver year-end tax tips that could save you some money.

That is exactly the kind of present every taxpayer wants!

Each of Santa's sleigh-pulling crew will offer a tip, beginning today and wrapping up on Friday, Dec. 21.

Since time is running out, both to complete your holiday errands and make tax moves, it's fitting that our 2012 reindeer tax tip games begin with a tip from Dasher.

And Dasher says take a look at what you've got left in your workplace medical flexible spending (or sometimes called savings) account.

Spend down your FSA: If you
have any money left in that account, popularly known as an FSA, you must use it up by the end of the benefits year. For most folks, that's Dec. 31.

If you don't
spend all your FSA funds, you'll lose them.

Technically, your employer gets the pretax cash that you've been stashing all year. And even if you like your boss, that's not what you want to happen.

Some companies do allow workers a grace period of two and a half months, until March 15 of the following year, to incur FSA eligible expenses and submit reimbursements against your prior year's account balance.

But the grace period option is just that, optional.

So check with your company about the deadline for your FSA submissions and payouts. If it is by the end of the year, then get to it and find ways to spend your FSA now.

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The More Tax Posts tab at the top of this page will take you to, well, more tax posts. You also can search below for a tax topic. 

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TO WRAP UP 2026

It’s over! With October’s extended filing deadline behind us, it is now time to focus on year-end moves to reduce your 2026 tax bill. 

You’ll find ways to do just that on the Tax Tips page (see the More Tax Posts drop-down menu at the top of the blog), as well as the separate tax tip pages for each month, notably October through December. If you’re on the Tax Tips page, you’ll find a monthly list at the end of this column. If you’re on another blog page, you can head straight to the October tips; at the bottom of that tips page you’ll find links to all the other 11 months’ collections of tax advice.

Not to spoil what you’ll find in that tax advice, but it does cover such things as tax deductions for charitable donations, investment moves that could reduce tax due, and ways to max out your tax-favored retirement savings. 

Finally, as the year winds down, things get hectic. There are lots of other things to occupy our time, like the much more fun upcoming holidays. But don’t lose sight of taxes, since timing is key. To be of use, most tax moves must be made by the end of the tax year. That’s Thursday, Dec. 31, which also is the last business day of the year. 

So that you don’t miss that final tax year deadline, also keep an eye on the countdown clock below. It will keep you on top of just how much time is left to make important, tax-saving moves. (Note: I’m in the Central Time Zone, so adjust accordingly for where you live.)

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