Your FSA plan may have a provision that the balance forfeits to your employer if you don’t spend down all your funds by the end of the plan year. Other plans allow you to carry up to a certain amount of leftover funds to the next plan year.
Don’t know which type of plan you have? Ask your HR or benefits administrator ~ and check out these 9 ways to use up any leftover FSA balance.
Flexible Spending Accounts are very popular employer-sponsored benefits. There are an estimated 32.6 million FSA accounts in 2022 according to the Aite-Novarica Group. FSAs can be used for a wide range of eligible expenses for account holders and qualified dependents, helping individuals reduce the cost of healthcare.
While there are many advantages that come with FSA accounts, one rule trips some people up. Some FSA accounts have a “use it or lose it” provision. If your employer’s FSA plan is not set up to allow carryover, you must spend the remaining balance by the end of the plan year or it reverts to your employer.
Did you contribute the maximum allowed this year? As the year nears its end, it’s time to take stock of where you are and plan to make the most of any remaining balance in your FSA account. Here are nine effective ways to do just that.
Quit Smoking!
Want to quit smoking, but don’t know where to start? Many smoking cessation programs and over-the-counter aids are eligible expenses for FSAs. Learn more about the resources available to you.
See Your Dentist
Use your FSA funds to help with dental care expenses, including those x-rays that insurance sometimes doesn’t cover. If your child needs braces or a new retainer, that can be a great way to spend down unused FSA funds.
Schedule a Doctor’s Appointment
Have you been putting off getting that nagging pain or injury checked out? Doctor co-pays and deductibles are eligible medical expenses, as is the cost of x-rays and lab tests.
It’s Flu Shot Time
According to the CDC, flu season begins in early October and peaks between December and March. It takes about two weeks for a person’s immune system to respond to the vaccine. Now is the prime time to protect yourself against this year’s flu viruses. Learn more about getting a flu shot.
Get to the Pharmacy
As the end of the year gets closer, many people spend down FSA balances by refilling prescriptions and stocking up on eligible over-the-counter products. Sunscreen, contact lens solutions, pain relievers, antiseptics, allergy medicines, and menstrual care products are among the many FSA-eligible items you can stock up on for this purpose.
Take Care of Your Eyes!
Eye care is essential. You can pay for eye exams, LASIK surgery, eyeglasses, and contacts. Prescription sunglasses and over-the-counter reading glasses are also eligible.
Replenish Your First Aid Kit
You can never be too prepared! You never know when you’ll need bandages, wound cleansers, and wraps for knees, wrists, and backs. First-aid kits are eligible for FSA purchase.
Diabetes Supplies, Including Insulin
Did you know supplies like insulin syringes, glucose monitors, glucose tablets, test strips, and sharps containers are FSA eligible? Stock up to spend down leftover FSA balances.
Baby Care
Babies need a lot of love and attention. Many parents may not realize that saline nasal sprays, gas and colic relief supplies, thermometers, nasal bulbs, and baby monitors are all FSA-eligible.
As we approach the end of calendar-year plans, these are just a few ways to help you spend down the funds set aside in your FSA account. Check your account balance today.
For 40 years, DataPath has been a pivotal force in the employee benefits, financial services, and insurance industries. The company’s flagship DataPath Summit platform offers an integrated solution for managing CDH, HSA, Well-Being, COBRA, and Billing. Through its partnership with Accelergent Growth Solutions, DataPath also offers expert BPO services, automation, outsourced customer service, and award-winning marketing services.
