For those who have Flexible Spending Accounts (FSA), the deadline to use that money is usually December 31st. However, some employers who offer FSAs, give a 2.5 month grace period. Where and how should FSA account holders spend their money? Lawrence Sprung, Mitlin Financial Founder, joins Yahoo Finance to give insight into the best ways to spend FSA dollars.

Sprung explains what options consumers will find themselves in: "Essentially employers can offer typically one of two options. They can either give you the extra two and a half months, so until March 15th to utilize those funds or they can also offer you the option to potentially roll over a portion of those unused funds. If you were left with money, and your employer let you roll it over from 2023 to 2024, you could roll over a maximum of $610. So you're either faced with typically using it by March 15th or rolling over a maximum of $610. It is important to take a look at those balances from last year, and figure out a game plan."

Sprung also says if someone is left with enough money, to really "think about some of those high priced or high-ticket items that you might be might benefit from."

For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.

Editor's note: This article was written by Nicholas Jacobino

Video Transcript

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RACHELLE AKUFFO: Use it or lose it. At least that's what you're probably thinking about the money in your flexible spending account or your FSA. FSA plans give workers the benefit to save money on health expenses pre-tax. But these accounts do have restrictions and, of course, deadlines. Now typically FSA users need to use their money by December 31st. But depending on which healthcare FSA plan you have, your employer can offer you a grace period.

And for those who have that extra 2 and 1/2 month extension, be mindful that March 15th deadline is just around the corner. Well, joining us now is Lawrence Sprung, Mitlin Financial founder and author of Financial Planning Made Personal. So Lawrence, good to see you again. So give people what they need to know here. How can FSA users best maximize the potential of their account? And what are the deadlines? What should they do between now and the deadlines?

LAWRENCE SPRUNG: Yeah. It's great to see you as well Rochelle. And yes, they are in crunch time right now. Essentially, employers can offer typically one of two options. They can either give you the extra 2 and 1/2 months, so until March 15th, to utilize those funds. Or they can also offer you the option to potentially roll over a portion of those unused funds. So if you were left with money and your employer let you roll it over from 2023 to 2024, you can roll over a maximum of $610.

So you're either faced with typically using it by March 15th or rolling over a maximum of $610. So it is important to take a look at those balances from last year and figure out a game plan on how to use what you need to use by the deadline.

RACHELLE AKUFFO: And for those, Lawrence, that have some money still left over, I mean, give us a primer here again on what is FSA eligible.

LAWRENCE SPRUNG: Yeah. So there are thousands of things that are FSA eligible. And with an easy search, you could figure those out. But let's say you're in a position where you have significant money left over in the account. Think about some of those high price or high ticket items that you might benefit from. So let's say massage can be FSA eligible. That could be a great way to take care of your wellness and utilize some of that FSA money.

Maybe you haven't bought yourself a new pair of glasses in a long time, and those can be pricey. Or maybe you need to stock up on contacts for the year. Or maybe you haven't had a dental exam. These are all things that are health related, FSA eligible. And then include, on top of that, there are thousands of products, including aspirin, Advil, Tylenol, pain products, medicines, things like that are at your normal retailers and pharmacies.

Many of those are FSA eligible. You could go on and do a search and definitely use those monies very easily.

RACHELLE AKUFFO: And Lawrence, sometimes it can be hard when you're picking out your benefits for the year, you, see HSA you see FSA pop up. Talk about the difference between those. And not just what you can spend with them, but also your ability to perhaps borrow against them.

LAWRENCE SPRUNG: Yeah. So your HSA, first of all, you have to have a high deductible healthcare plan to be eligible for an HSA or a health savings account. So if you have that, it's a way for you to put away pre-tax money that can be used for copays. Very similar things to an FSA. The benefit of the FSA is you do not need a high deductible savings account. So if your employer offers it, everybody is eligible for an FSA.

And it allows you to put monies away pre-tax for very similar things to the HSA. But you also have that use it or lose it functionality in the FSA or the ability to roll it over from one year to the next, or that extra 2 and 1/2 months. The HSA is something that allows you to continue to roll over those monies and grow over time. Neither one of them can you borrow against, but you can use as a vehicle to pay for those out of pocket health expenses utilizing pre-tax money.

RACHELLE AKUFFO: Lawrence Sprung, Mitlin Financial joining us there, some good takeaways, and author of Financial Planning Made Personal. Thanks so much for joining us today.

LAWRENCE SPRUNG: Thank you.