5 Flexible Spending Account tips for end of year
The Flexible Spending Account deadline is approaching
Now that the holidays are over and the end of the year is near, it's time to re-focus on Flexible Spending Accounts.
Because FSAs have a "Use-it-or-Lose-it" rule, you must use any remaining money or else you'll risk losing it (if you don't spend the money by your specific year-end deadline).
Luckily, there's still some time before this year ends, so there are a few days to get all the FSA expenses in order. A lot of plan years end on December 31, but it's advised to contact the FSA administrator or HR department to find out when exactly your plan year is over.
Here are 5 Ways to Make Sure You Use your Flexible Spending Account
- Keep calm and carry on...and check your FSA plan-year deadline. Some FSAs allow for a Carryover of some FSA money (up to $500) to the next year, and other plans have a Grace Period (2 1/2 months past the deadline to use remaining funds). Check with your FSA administrator now to see when your deadline is, and whether your plan has an extension.
- Submit for reimbursement. Make sure you submit for FSA eligible expenses to get reimbursed in time. FSA eligible expenses could include costs for medical care, for out-of-pocket expenses at the dentist or eye care, and for thousands of healthcare products. If you have an FSA debit card, you won't have to worry as much (though holding on to receipts isn't a bad idea)as payments for eligible expenses are auto-deducted from the card.
- Check your remaining balance and spend down the FSA account. If you still have some remaining funds, you could use these toward a variety of expenses. For a better idea of which expenses would be covered, check in with your FSA administrator, or you can also browse our Eligibility List for a comprehensive guide.
- Treat yourself. The holidays are over and you can finally relax at home. At FSAstore.com, we offer a Goodies section with pain relief eye masks, hot/cold therapy products and more to stay healthy.
- Shop for products for everyday health needs. FSAs cover everyday health items such as band-aids, hot/cold heat wraps, contact lenses, prescription eyeglasses, shoe inserts, and even breast pumps. Shopping for these with tax-free money will save you on items you would already be purchasing out of pocket!