FSAs are employer-provided plans that allow employees to direct pretax dollars into an account to pay for qualified medical or dependent care expenses. With most FSAs, any amount not spent by the end of the plan year is returned to your employer or plan provider.
Every year, more than $400 million of earned money is forfeited because workers miss the spending deadline, according to Business Insider.
Some plans have grace periods or limited rollovers — check with your employer or plan administrator — but, even so, don’t waste your hard-earned dollars.
Eligible spending
FSA dollars can be used for a broad range of items, from deductibles and copays to prescription drugs and medical supplies. You might be surprised at some of the items included.
If you’ve already covered all of your doctor visits and other health care services for the year, you could spend FSA dollars to:
- Update your glasses
Buy new glasses or contacts. You could even buy reading glasses — and you don’t need a prescription for those.
- Pamper your feet
Get gellin’ with shoe inserts, or treat your feet to other products such as corn and callus removers and medicated foot powder. - Clear up your skin
Acne treatments and facial cleaners are eligible for FSA spending but require a prescription. - Brace for injuries
Bandages, first-aid kits, thermometers, and hot and cold packs are eligible. - Purchase medical supplies
Diabetes supplies, blood pressure monitors, athletic braces, walking aids, hearing aid batteries, and CPAP machines are eligible.
- Restock the medicine cabinet
Most over-the-counter items, including pain relievers, antacids, and cough and cold supplies, are FSA-eligible. However, you’ll need a doctor’s prescription for the items to pay with FSA dollars. - Prep for family planning
Condoms, fertility kits, and pregnancy tests are eligible. - Get ready for vacation
Stock up now for your next trip with covered items such as motion sickness medication or bands, adult and children’s sunscreen, and travel first-aid kits.
The IRS defines which medical expenses are eligible under these accounts, but some employer plans have their own set of eligible items. So, again, double check with your benefits administrator to be sure!