Don’t Let Your FSA Funds Disappear: Strategic Spending Tips
As the year comes to a close, it’s essential to review your flexible spending account (FSA) balance to avoid losing any unused funds. If you’re unsure about the deadline or how to utilize your remaining balance, don’t panic. With a little planning, you can make the most of your FSA money.
Understanding Your FSA Deadline
The first step is to clarify your FSA deadline with your HR department or plan administrator. While the typical deadline is December 31st, your company’s policy may vary. Additionally, you might have a two-and-a-half month grace period or the option to carry over some or all of your remaining balance to the next year. Be sure to ask about these possibilities.
Expanding FSA Eligible Items
Thanks to advancements in wearable technology, the range of items you can purchase with your FSA funds has grown. Online stores like FSAStore.com offer devices such as blood pressure monitors and digital scales that qualify as healthcare expenses. However, always double-check with your FSA administrator before making a purchase to ensure the item is eligible.
The Power of a Letter of Medical Necessity
A letter of medical necessity from your doctor can unlock access to a broader range of FSA-eligible items, such as exercise bikes or supplements. Online marketplaces like TrueMed connect users with licensed practitioners who can provide these letters. You can also request one from your primary care physician.
Smart Spending Strategies
In the past, last-minute FSA spending often meant booking appointments or buying medical products. However, with the 2020 CARES Act, you can now use your FSA funds to purchase over-the-counter medications and menstrual products. Remember to keep receipts for all purchases, even if your plan doesn’t require documentation upfront.
Avoid Common Mistakes
To make the most of your FSA funds, avoid common mistakes that can trip you up near the deadline. Stay informed about your deadline, explore extensions and carryover options, and double-check the eligibility of items before purchasing. By being strategic, you can ensure you use your FSA money wisely and on things that bring you value.
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