What is a Flexible Spending Account (FSA)
Many employers offer their team the opportunity to enroll in a Flexible Spending Account (FSA). FSAs allow employees to put away pre-tax dollars to spend on eligible healthcare products and services. However, when an employee puts money into their FSA, they must use that money by the deadline, or they may lose it.
FSA Deadline Update
Any funds deposited in 2020 will be available for use until December 31, 2021. The money accrued in 2021 will be available until December 31, 2022.
Spending FSA Money Before the Deadline
As the calendar year comes to an end, it’s time to start thinking about how you’ll spend your FSA funds. An employee can refer to the plan their specific plan documents or the IRS website to determine what types of services and items are considered eligible. Employees can also visit the FSA store, which lists products that are guaranteed to be covered. Here are some other products and services ideas that employees can spend FSA dollars on:
- Eyeglasses, eye exam, contact lenses, prescription sunglasses
- First aid or diabetic supplies
- Sunscreen or dental treatment
Check your account balance prior to utilizing your funds and confirm the services and products are considered qualified expenses.