Best Employee Benefits to Use Before Year-End (2025 Guide)
TL;DR Summary:
- Many employer benefits reset on January 1, so unused funds may be forfeited.
- Key year-end benefits: FSA funds, HSA contributions, PTO payouts, retirement contributions, wellness stipends, and education benefits.
- Maximizing pre-tax accounts can significantly reduce your 2025 taxable income.
- Most unused FSA dollars are “use-it-or-lose-it,” while HSA funds roll over indefinitely.
- Employees should check deadlines, claim reimbursements, and schedule final healthcare or wellness services before December 31.
Why Year-End Employee Benefit Planning Matters
Many workplace benefits operate on annual cycles, meaning unused funds or allowances may disappear at year-end. Reviewing your employer’s benefits before December 31 can prevent forfeiting valuable money, tax advantages, or reimbursements you’re entitled to.
1. Use Your Flexible Spending Account (FSA) Funds
The FSA is one of the biggest year-end priorities because funds are often “use-it-or-lose-it."
- Eligible expenses: medical appointments, prescriptions, dental care, vision care, OTC items.
- Health FSA 2025 limit: check your employer’s plan; many follow IRS annual limits.
- Important: Some employers offer a small rollover or grace period—confirm deadlines.
Smart Year-End FSA Purchases
- Glasses or contacts
- First-aid supplies
- Therapy sessions
- Dental cleanings and fillings
- Birth-control prescriptions and refills
2. Max Out Your Health Savings Account (HSA)
HSAs are one of the most powerful tax-advantaged accounts available. Unlike FSAs, your HSA balance rolls over indefinitely and stays with you even if you change jobs.
Benefits include:
- Pre-tax contributions
- Tax-free investment growth
- Tax-free withdrawals for qualified medical expenses
Year-end tip: Review your year-to-date contributions and consider topping up to reduce taxable income.
3. Check Your PTO and Time-Off Balances
Many employers do not allow unused PTO to roll over to the next year. Some companies offer a PTO payout or conversion program, but many do not.
- Use remaining vacation days before they expire.
- Check if you can “cash out” unused hours.
- If your employer allows rollover, confirm the limit (often capped).
4. Boost Your 401(k) or 403(b) Contributions
Year-end is the last chance to adjust retirement contributions that reduce your taxable income for 2025.
- Increase your paycheck contribution percentage for the final pay periods.
- Ensure you received your full employer match.
- Check if your employer offers a “true-up” contribution.
5. Spend Your Wellness or Lifestyle Benefits
Many employers now offer yearly stipends for fitness, mental health, transportation, or well-being. These benefits often expire at year-end.
- Gym membership reimbursements
- Fitness equipment credits
- Therapy or mental-health reimbursements
- Commuter benefits or transit passes
- Home-office stipends
6. Claim Any Remaining Reimbursements
Many workers forget to submit year-end claims:
- Tuition reimbursement
- Professional development credits
- Conference or certification reimbursements
- Work-from-home equipment stipends
Tip: Gather receipts and file reimbursement claims before your employer’s submission deadline.
7. Review Dependent Care Benefits
If your employer offers a Dependent Care FSA (DCFSA), check your balance. These also typically operate on a use-it-or-lose-it model.
Eligible year-end uses may include:
- Childcare payments
- Preschool or after-school programs
- Elder care for dependents
8. Use Your Annual Insurance Benefits
Your deductible and out-of-pocket maximum often reset January 1.
- If you’ve already met your deductible, schedule final healthcare appointments now.
- Complete dental cleanings or major dental work before coverage resets.
- Book vision exams or purchase glasses if covered annually.
Comparison Table: Year-End Benefits You Might Lose
| Benefit |
Rollover? |
Action Needed |
| Health FSA |
Usually No |
Spend remaining balance |
| HSA |
Yes |
Optional top-up |
| PTO |
Varies |
Use or cash out |
| Wellness Stipends |
Rarely |
Submit receipts |
| Tuition Reimbursement |
Sometimes |
File claims |
Checklist: What to Do Before December 31
- Check balances for FSA, HSA, PTO, and stipends
- Book medical, dental, or vision appointments
- Submit all receipts for reimbursements
- Increase retirement contributions if needed
- Review new employer benefits for 2026
Key Takeaways
- Many valuable employee benefits reset on January 1—and unused funds can disappear.
- Health FSAs, PTO balances, and wellness stipends are the most time-sensitive benefits.
- HSAs and retirement accounts provide strong year-end tax advantages.
- A 10-minute review can save hundreds of dollars before year-end.
Sources / Official References
- U.S. Department of Labor – Employee Benefits Security Administration
- IRS – Flexible Spending Account & HSA Guidance
Disclaimer: This article provides general information only and not financial or tax advice. Consult a licensed professional for personal guidance.
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