Top 5 April Fool’s Myths about Flexible Spending Accounts
Whether you’ve just landed a job that offers a Flexible Spending Account (FSA) benefit or have held one for many years, finding accurate information about your account may seem like an endless list of April Fool’s jokes consisting of conflicting facts, changing regulations and confusing jargon.
Luckily, at FSAstore.com, we’re here to separate truth from the reality so you can get the most out of your FSA! Let’s set the record straight on some of the most common FSA myths out there that may as well be April Fool’s jokes in their own right.
“My FSA will cost me money”
While it’s true that FSAs are funded by voluntary salary reduction agreements through employer benefit plans, this money can be used on thousands of FSA eligible products from bandages to sunscreen to first aid kits. You can set aside up to $2,500 per year in your FSA. Often an employer will also offer a grace period (two and a half months after the plan year deadline to still use FSA funds) - for many FSA plans this can be extended to March 15.
Best of all, an October 2013 U.S. Treasury Department ruling states that $500 can now be rolled over into the next year. With close monitoring and use of your FSA funds, you’ll end up saving money in the long run!
“I can only buy prescriptions with my FSA”
FSAs are applicable with prescriptions and other medical products, but also a lot more you may not have been aware of. Over-the-counter (OTC) drugs are now eligible for these savings as well, including allergy medicines, pain relievers and even cough medicine, reported Preferred Health Choices. However, to purchase OTCs, you must now get a prescription from a doctor to receive FSA reimbursement, but FSAstore.com’s Rx Process can help you easily find which products will need a physician’s documentation.
“I want a stockpile of my favorite product!”
While your FSA funds are yours to use on the products and services of your choice, the IRS does not approve of stockpiling and buying one item excessively may not qualify as an eligible expense. Luckily, there are thousands of great items to choose from and you can find everything to meet your needs without raising the ire of the IRS.
“I have extra FSA money. I can donate my extra items”
Your heart is certainly in the right place if you’d like to use your FSA funds in a charitable manner, but the IRS will only allow you to receive reimbursements for products and services that are utilized by you, your spouse and dependents. With FSAstore.com’s huge selection of products, you’d be amazed at how quickly you can spend those FSA funds on items that your loved ones could use year-round.
“My health insurance premiums will be covered by my FSA”
Flexible spending accounts are invaluable in lessening the burden of healthcare and medication costs, but they do have some restrictions. FSAs cannot cover health insurance premiums, long-term care costs or expenses that come from another health plan. Thankfully, with all of the money you’ll save in a given year on medications and services, those premiums will seem like much less of a burden.
>Don’t get caught up with the FSA misinformation on the web and elsewhere and learn how you can use your funds your way at FSAstore.com! Start taking advantage of your FSA, saving money, living your life as you choose and leaving the myths and pranks to April Fool’s Day.