As the year winds down, it’s easy to focus on holiday plans and upcoming New Year’s resolutions, but don’t forget one crucial to-do: using your year-end benefits. Whether it’s healthcare-related accounts, employer-sponsored perks, or professional reimbursements, now is the time to ensure you’re not leaving money on the table. 

For self-employed professionals and law partners, understanding and maximizing these benefits can save you money and help you start the new year strong. 

 

1. Flexible Spending Accounts (FSAs): Use It or Lose It 

FSAs are a fantastic tax-advantaged tool for covering healthcare and dependent care expenses, but most plans follow the “use-it-or-lose-it” rule. Any money left in your FSA at the end of the year typically gets forfeited, meaning now is the time to spend it wisely. 

What to Do Now: 

• Check your remaining FSA balance and plan how to use it before December 31. 

• Schedule last-minute doctor visits, dental cleanings, or vision appointments. 

• Stock up on eligible items like over-the-counter medications, bandages, and contact lenses. 

If you have a Dependent Care FSA, consider prepaying for childcare or other eligible services for early next year. Some plans also offer short grace periods or small carryover amounts—be sure to check your plan’s specific rules. 

 

2. Health Insurance Deductibles: Get the Most Out of Your Coverage 

If you’ve already met your health insurance deductible for the year, now is the perfect time to schedule medical procedures, tests, or treatments you’ve been postponing. Once your deductible is met, insurance typically covers a greater portion of your costs, making it a smart move to get these expenses taken care of now. 

Take Action: 

• Schedule any necessary medical appointments or treatments before year-end. 

• Refill prescriptions or purchase medical devices that may be covered. 

Not sure if you’ve met your deductible? A quick call to your insurance provider or a glance at your online account can clarify. 

 

3. Don’t Overlook Employer-Provided Benefits 

For those with access to employer benefits, now is a great time to take advantage of programs that reset annually. These might include: 

• Professional Development Stipends: Use funds for conferences, courses, or certifications that can enhance your career. 

• Wellness Programs: Tap into reimbursements for gym memberships, wellness apps, or other health-related services. 

• Technology or Office Equipment Allowances: If your company offers funds for home office improvements, make those upgrades before the deadline. 

These benefits are designed to support your growth and well-being, so don’t let them go unused. 

 

4. Maximize HSA Contributions 

If you’re enrolled in a High Deductible Health Plan (HDHP), don’t forget about your Health Savings Account (HSA). Unlike FSAs, HSA funds roll over year to year, but contributions made by December 31 are tax-deductible for this year’s taxes. 

For 2023, you can contribute up to $3,850 as an individual or $7,750 for a family, with an additional $1,000 catch-up contribution if you’re 55 or older. This is a great way to reduce your taxable income while saving for future healthcare expenses. 

 

5. Review and Plan for Other Year-End Opportunities 

The end of the year is also a chance to review any additional benefits or financial tools you can leverage: 

• Charitable Giving: Donations made by December 31 can provide tax benefits if you itemize deductions. 

• Tax-Loss Harvesting: If you’ve had investment losses, now is the time to offset gains and reduce your taxable income. 

• Deferred Income or Accelerated Expenses: For self-employed individuals, consider deferring income into next year or prepaying deductible expenses to manage your tax liability. 

 

Start the New Year Strong 

Using your year-end benefits isn’t just about avoiding waste—it’s about making the most of the resources available to you. Whether it’s tapping into FSAs, maximizing HSAs, or taking full advantage of employer perks, these steps can help you save money, reduce stress, and enter the new year in control of your finances. 

If you’re unsure how to navigate these opportunities, reach out to Hark Financial Planning. We’re here to help you make smart, informed decisions that set you up for success. Don’t leave money on the table—make the most of your benefits before they expire!