What can I spend limited FSA on?
Flexible Spending Accounts (FSAs) are a popular employee benefit that allows individuals to set aside pre-tax dollars to pay for qualified medical expenses. However, many people are unsure about the types of expenses they can cover with their limited FSA funds. In this article, we will explore the various eligible items and services that you can spend your limited FSA on, ensuring that you make the most out of this valuable tax-saving tool.
Healthcare Services and Supplies
The primary purpose of an FSA is to cover healthcare expenses. This includes a wide range of services and supplies that are considered necessary for the prevention, diagnosis, or treatment of a medical condition. Here are some examples:
– Doctor’s visits and consultations
– Dental care, including cleanings, fillings, and root canals
– Vision care, such as eye exams, glasses, and contact lenses
– Prescription medications and over-the-counter drugs prescribed by a healthcare provider
– Braces or orthodontic treatment
– Physical therapy and rehabilitation services
– Hearing aids and exams
Prescription Medications and Over-the-Counter Drugs
FSAs can be used to pay for both prescription medications and over-the-counter (OTC) drugs. To qualify, the OTC drugs must be prescribed by a healthcare provider. Common eligible OTC items include:
– Pain relievers (e.g., ibuprofen, acetaminophen)
– Allergy medications
– Diabetic supplies, such as test strips and insulin pumps
– Vitamins and supplements prescribed by a healthcare provider
– Antacids and laxatives
Dependent Care Expenses
In addition to healthcare expenses, FSAs can also be used to cover dependent care expenses for eligible dependents. This includes costs for child care services, elder care, or adult day care. To qualify, the dependent must be under the age of 13 or be physically or mentally unable to care for themselves.
Qualified Healthcare Insurance Premiums
Another eligible expense is the payment of qualified healthcare insurance premiums. This includes premiums for health, dental, and vision insurance plans, as well as long-term care insurance.
Travel Expenses for Medical Treatment
If you need to travel for medical treatment that is not available in your area, you can use your FSA to cover eligible travel expenses. This includes costs for transportation, lodging, and meals while traveling for medical care.
Important Considerations
It’s essential to remember that FSA funds are subject to a “use-it-or-lose-it” rule, meaning that any unused funds at the end of the plan year will be forfeited. However, some plans offer a grace period or allow you to roll over a limited amount of funds into the next plan year.
In conclusion, there are many eligible expenses you can spend your limited FSA on, including healthcare services, prescription medications, dependent care, and insurance premiums. Make sure to review your plan’s specific guidelines to maximize the benefits of your FSA and save on your healthcare costs.
