Are you making the most of your Flexible Spending Account (FSA)? In this guide, we’ll explore FSA-eligible items and provide essential information to help you maximize the benefits of your account.
Understanding YourFlexible Spending Account (FSA)
A Flexible Spending Account, or FSA, is a tax-advantaged savings account that allows you to set aside pre-tax dollars to pay for future eligible medical expenses. These funds can be used to cover a wide range of health care-related costs for you, your spouse, and your dependents.
Benefits of an FSA
· Tax Savings: By contributing to your FSA with pre-tax dollars, you can lower your taxable income and reduce your overall tax liability.
· Savings on Healthcare Costs: FSAs can help you save money on eligible medical expenses that may not be covered by your health insurance plan.
· Convenience: Accessing funds from your FSA is easy, typically through a debit card or reimbursement process.
· Employer Contributions: Some employers may offer contributions to your FSA, enhancing your savings even further.
FSA Eligible Items: What’s Covered?
One of the most significant advantages of an FSA is the ability to use it for a wide range of eligible items and services. The FSA Store provides a comprehensive list of FSA-eligible items and clarifies any common misconceptions on items. Here are some common expenses that you can typically use your FSA funds for:
Medical Services
· Copayments
· Deductibles
· And coinsurance for doctor visits, lab tests, and other medical services.
Pain Relief
· Over-the-counter (OTC) medication for cough, cold, allergies, and pain relief
· Heating pads
· Pain relief creams and ointments
· Massagers
· Shoe insoles
First Aid
· Bandages
· Antibiotic ointments
· First aid kits
· Cold and hot compress
Home Health
· Blood pressure monitors
· Thermometer
· Blood sugar test kits
· Medical alert devices
Vitamins and Supplements
· Multivitamins
· Prenatal supplements
· Sleep aids
· Nutritional supplements
Acne and Skincare
· Medicated acne products
· Acne medication (Accutane)
· Eczema, psoriasis, and other skin conditions products
Sun care
· Sunscreen
· Lip balm with SPF 15 or greater
Oral Health
· Tooth pain relief
· Denture cleaning tablets
Menstrual Care
· Pads
· Tampons
· Menstrual cups
· Menstrual underwear
· Menstrual pain relief
Intimate Health
· OTC and prescription birth control
· Condoms
· Fertility tests
Baby and Child Health
· Baby monitors
· Breast pumps
· Children’s pain relief
· Baby ointment (diaper rash, diaper cream)
Eye Care
· Prescription contact lenses
· Eye drops
· Reading glasses
Important Considerations
While FSAs offer many benefits, there are some key considerations to keep in mind:
· Use It or Lose It: Most FSAs operate on a “use it or lose it” basis, meaning that any funds left unused at the end of the plan year may be forfeited. Be sure to plan your expenses accordingly to avoid losing money.
· Plan Year and Grace Periods: Check with your employer to understand your FSA plan year and whether you have a grace period or carryover option to use the remaining funds.
· Keep Receipts and Documentation: It’s essential to keep receipts and documentation for all FSA purchases in case of an audit or reimbursement request.
Conclusion
Your Flexible Spending Account is a valuable tool for managing healthcare costs and saving money on eligible expenses. By understanding FSA-eligible items and maximizing your account benefits, you can take control of your healthcare spending and enjoy significant tax savings. Don’t let this valuable benefit go to waste – start making the most of your FSA today!
To learn more about FSAs, contact JTS today at 501-227-0194.
Remember! FSAs and other account types are not all be the same. If you want to confirm the details of your FSA, check with your administrator to see if something is eligible before making a purchase.