(MONEY Magazine) – Spend Your FSA Dollars

Putting money in a flexible spending account is a great way to turn health costs into tax savings. But it works only if you spend the cash in your account. Otherwise, you lose it.

• WIPE OUT '06 Some 50% of companies with FSAs gave employees until March 15, 2007 to spend '06 funds, thanks to a recent ruling. If yours is among them and you have money left, spend it on anything from acupuncture to laser eye surgery to X-rays.

• CLAIM ON '07 Not eligible for the grace period? Well, you can still go ahead and start using this year's money. Even though the dollars are deducted from your paycheck over the course of the year, the full amount is available immediately.