Do you have a Flexible Spending Account (FSA)? Is there still money in it that you haven’t spent in 2017? Don’t let those pre-tax dollars go to waste!
With an FSA, you can pay for medical expenses for you, your spouse, children under 27, and other dependents. In 2017, you can save up to $2,600 in your FSA, and owe no income taxes on your contributions.
If you do have money leftover in your FSA at the end of the plan year, your employer can allow you to either take an extra two-and-half months to use the money in your FSA, or allow you to roll $500 over to the next year.
If you need to spend down your account, think creatively about how to use that money. For example, do you have a copy of your medical records? It is always a good idea to have one. If your health care providers charge a fee for copying your records, that is something that you can pay for out of your FSA account!
Here are some other things that you can pay for through your FSA account:
- Acupuncture treatments
- Annual physical exams
- Bandages and other medical supplies
- Birth control
- Blood pressure monitors
- Body scans
- Breast pumps
- Breast reconstruction surgery
- Capital improvements to your home, such as ramps, railings, and support bars
- Childbirth classes
- Chiropractic care
- Cholesterol test kits
- Contact lenses and eyeglasses
- Copays, coinsurance, and deductibles for dental, medical, vision and prescription coverage
- Dental treatment, including teeth cleaning, but not teeth whitening
- Diabetic monitors, test kits, strips and supplies
- Diagnostic devices such as a blood sugar test kit
- Eye exams
- Eye surgery, including laser eye surgery and Lasik
- Fertility treatments and monitors
- First aid kits
- Flu shots
- Guide dog or other service animal (buying, training, and maintaining)
- Hearing aids and batteries
- Lab fees
- Mileage for travel to and from health care appointments
- Monitors and test kits
- Night guards
- Nursing services
- Over-the-counter reading glasses
- Physical therapy
- Pregnancy test kit
- Prescription sunglasses
- Psychiatric care
- Psychologists and therapy
- Stop-smoking programs
- Vaccinations and immunizations
- Walking aids like canes, walkers, and crutches
- Weight-loss program (if it’s a treatment for a specific disease diagnosed by a physician)
- Wigs (upon the advice of a physician)
While 87% of employers with 500+ employees offer FSAs, only 21% of eligible employees take advantage of them, according to the Mercer 2016 National Survey of Employer-Sponsored Health Plans.
Click here for more information about FSAs and Health Care Spending Accounts (HSAs).