What can you buy with your flexible spending account?
Flexible spending accounts (FSAs) are a popular employee benefit that allows you to set aside pre-tax dollars for certain healthcare expenses. But what exactly can you purchase with your FSA? Here’s a guide to help you understand the wide range of items and services you can buy with your FSA funds.
Prescription Medications and Over-the-Counter Remedies
One of the most common uses of an FSA is to pay for prescription medications. You can use your FSA funds to cover the cost of both brand-name and generic drugs. Additionally, many FSAs also cover over-the-counter (OTC) remedies, such as pain relievers, allergy medications, and cold and flu treatments, as long as they are prescribed by a doctor.
Medical Supplies and Equipment
FSAs can also be used to purchase a variety of medical supplies and equipment. This includes items like crutches, braces, orthopedic shoes, and even breast pumps for nursing mothers. These items can be expensive, but using your FSA funds can help offset the cost.
Doctor’s Visits and Preventive Care
While you can’t use your FSA to pay for routine doctor’s visits or co-pays, you can use it for certain preventive care services. This includes vaccinations, screenings, and annual physicals. By using your FSA funds for these services, you can help maintain your health while saving on taxes.
Vision and Dental Care
FSAs can be used to cover a range of vision and dental care expenses. This includes eye exams, glasses, contact lenses, and dental cleanings, fillings, and braces. Many people find that using their FSA for these services can save them a significant amount of money.
Health and Fitness Expenses
In recent years, many FSAs have expanded to cover health and fitness expenses. This includes gym memberships, fitness classes, and even personal training sessions. By using your FSA funds for these activities, you can promote a healthier lifestyle while saving on taxes.
Chiropractic and Acupuncture Services
FSAs can also be used to cover alternative healthcare services, such as chiropractic and acupuncture treatments. These services can help alleviate pain and improve overall health, and using your FSA funds can make them more affordable.
Eligible Expenses to Watch Out For
It’s important to note that not all healthcare expenses are eligible for FSA reimbursement. For example, you cannot use your FSA funds to pay for cosmetic surgery, weight loss programs, or non-prescription vitamins. Always check with your employer or FSA administrator to ensure that an expense is eligible before making a purchase.
Maximizing Your FSA Benefits
To make the most of your FSA, it’s essential to plan ahead and budget your funds carefully. Since FSAs have a “use it or lose it” policy, it’s important to spend your funds by the end of the plan year or risk losing them. Consider scheduling appointments and purchases in advance to ensure you use your FSA funds effectively.
In conclusion, a flexible spending account offers a wide range of healthcare-related purchases that can help you save on taxes and improve your health. By understanding what you can buy with your FSA, you can make the most of this valuable employee benefit.
