It’s the end of the year and most Flexible Spending Account (FSA) plans are coming to a close. Let’s talk about what this means to you.
Although Health Care FSA Account rules vary, most have a use-it-or-lose-it provision. This means your unspent balance is forfeited. You’ll want to keep an eye out for the following practices:
- Many plans allow participants to rollover up to $500 of unspent dollars into the new year. But, any amounts in excess of this maximum are lost.
- Some plans have a grace period that give you some time into the new year to spend your remaining balance.
- If you are enrolled in a High Deductible HSA Plan, your “Limited FSA” plan may only allow for reimbursement of Dental and Vision expenses until you have reached your medical plan deductible. Once met, you may use your FSA dollars on Medical expenses as well. Keep this in mind as you work to spend down your balance.
- Some plans allow for reimbursement of health plan expenses only; such as copayments and coinsurance. Other plans allow for reimbursement of all IRS eligible expenses. Refer to https://www.irs.gov/pub/irs-pdf/p502.pdf for a complete listing.
Or, check out http://www.FSAStore.com. This site offers the largest selection of FSA eligible items online; such as baby care, first aid, feminine products, family planning, travel essentials, etc. Shopping on this site is easy as it stocked exclusively with FSA eligible products only and you may use your FSA debit card for purchases.
There is still time to spend your remaining balance. But the clock is ticking. So, check out your plan rules and find out how much you have in your account. Get the most value out of your pre-tax dollars by spending each and every penny you’ve set aside.