If you have a Flexible Spending Account and you haven’t used any or all of the money saved in it yet, you’re about to leave money on the table.
An FSA is a tax-free account people put money into throughout the year from their paycheck to cover certain out-of-pocket healthcare costs, according to Healthcare.gov. The money is not taxed so you’ll save an amount equal to the taxes you would have paid on the money set aside.
At the end of the year, any unused FSA money goes back to the employer, according to the FSA Store. So before that happens, there’s a laundry list of health-related items that can be purchased using FSA money, including some you might not realize.
Exact spending deadlines depend on the provider but typically, you have until the end of December to spend the money or lose it, although some plans allow through March 15 with a grace period, Forbes reported.
Typically, FSA funds pay for deductibles and copayments (but not for insurance premiums), as well as prescription and over-the-counter medications, the latter with a doctor’s prescription, Healthcare.gov states.
The U.S. Office of Personnel Management website urges people to keep their receipts and other supporting documentation, such as an “explanation of benefits” from the insurance company.
Some qualifying health care items are fairly obvious, but others may not be. The OPM site lists all the healthcare items eligible to be paid with an FSA card. Amazon also offers a full list of items eligible to be purchased with an FSA card.
Here are some that may surprise you:
- Acupuncture
- Condoms
- Feminine hygiene products (e.g. tampons, feminine napkins)
- Hair regrowth or Rogaine medications (over-the-counter)
- Lamaze classes (charges for mother only)
- Lice treatment
- Masks (e.g. PPE face masks)
- Medical record charges
- Neti pot
- Occlusal mouth guards to prevent teeth grinding
- Smoking cessation (programs, counseling or prescriptions)
- Sunscreen (only if it’s SPF 15+ and “broad spectrum,” also sunburn creams and ointments; some lip balms with SPF 15+)
- Transportation: Airfare (for treatment of a medical condition)
- Transportation: Bus, Train, Taxi, Ambulance, Parking, Tolls, Gas (for eligible care/expenses when primarily for medical care, including a parent who must go with a child who needs medical care)
- Vision contact lenses case
- Walking aids (canes, walkers, crutches and related supplies)
- Wipes – hand sanitizing for the prevention of COVID-19 with 60% + alcohol base
