Flexible Spending Accounts (FSAs) are arrangements made through employers that can pay for medical expenses. When used correctly, the tax-advantaged accounts can help you save on healthcare expenses.

 

The benefits are different from a health savings account in that the money must be spent within the calendar year. You save money only if you spend the entire amount before the deadline. This means that if you do not use the benefits before the end of the year, you lose them. 

 

Annual FSA Contributions

FSA contributions come with an annual limit of $2,700. This money functions on a use-it-or-lose-it basis. The entire contributed amount must be spent within the year. There are special cases where you may be able to get some wiggle room. 

 

There is the rollover option where the employee can move at least $500 to the following year’s balance. The other option is where the employer provides a grace period. In this case, the employee has a grace period of two-and-a-half months to spend the balance. However, you can benefit from only one of the options. 

 

Using Your FSA Money

Regardless of the type of option your FSA provides, you need to spend all your money within a specified period. It is vital to consult your human resources department for details about your FSA account. 

 

Remember, your employer chooses the option ahead of time. As the deadline for this year draws near, you must find out the best way to spend your benefits. If you still have FSA money to spend, you need to find out the eligible items that you can purchase. You can visit the FSA Store to get more details. 

 

Your Medicine Cabinet

This is a good time to restock your cabinet with eligible items. Refill any prescriptions that you may have using the FSA funds. This is something that you can do even if you do not have current health issues. 

 

Having these items in the medicine cabinet can help fulfill any future needs that you may have. Some of the items you can purchase include first aid kits, medical tape, band-aids, ace bandages, and sunscreen. Other items are humidifiers, thermometers, saline nasal spray, allergy medicines, wrist, knee, and ankle braces, and OTC pain relievers. 

 

Your Vision Care

Taking care of your vision is one of the most important things that you can do. Good eyesight can help enhance the quality of your life. Scheduling an eye exam before the end of the year will help ensure that you begin the following year well. 

 

An eye exam will allow the eye specialist to look for any eye issues that can be problematic down the line. Annual eye exams can help prevent the development of serious eye diseases. If you wear corrective lenses, this is a good time to renew your prescription. You can get new glasses or contacts using the FSA benefits. 

 

If you have any FSA funds left, you need to come up with a spending plan. The IRS rules direct that when the year is over, the unspent money is gone. It is vital to understand that there are many eligible benefits.


 

For more on maximizing your FSA benefits, contact Vision One Eyecare Center at our offices in Fort Mitchell or Dry Ridge, Kentucky. You can call (859) 267-1700 or (859) 407-7400 today to schedule an appointment.