For recognized medical bills, versatile spending accounts are an effective way to funds for the yr forward and pay for obligatory well being care with tax-free contributions. The solely catch? You usually have to make use of your FSA cash by the tip of the yr.
If you are headed into the tip of 2024 with a big FSA steadiness, don’t fret. An extended checklist of things and well being providers are FSA eligible, together with a number of chances are you’ll not have thought of, like batteries for medical gadgets, earplugs, yoga mats or sunscreen.Â
Read on to see all of the methods you may spend your FSA cash earlier than the tip of 2024, and find out about whether or not you may roll any of your FSA cash into 2025. For extra, find out about adjustments to Medicare for 2025Â and easy methods to set sensible health objectives for the brand new yr.
The time for spending your FSA cash is shortly operating out.
What are versatile spending accounts, or FSAs?
Flexible spending accounts, additionally known as versatile spending preparations, are a kind of “cafeteria plan” from employers that permit folks to make use of tax-free contributions from their paychecks for particular bills. There are a number of kinds of FSAs, however the most typical are well being FSAs, which contributors can use to pay for medical and dental prices that are not lined by insurance coverage.
With an FSA, you will determine how a lot you need to contribute at first of the yr, and your employer will deduct a portion of it from each paycheck.
The most quantity an worker can contribute to an FSA is $3,200 for 2023 and $3,300 for 2025. Employers may present extra funds to FSAs as a profit, however these funds don’t impression the worker contribution restrict.
Traditionally, workers with FSAs file claims with their employers to obtain reimbursement for eligible bills. Some firms now challenge a debit card with FSAs in order that plan contributors could make purchases instantly from their accounts.
Can I roll over any of the cash in my FSA account to 2025?
Most FSAs comply with a “use it or lose it” system the place unused funds on the finish of the yr revert to your employer, with two doable exceptions. Changes to FSA legal guidelines in 2021 allowed firms the choice of giving workers both:
- A 2.5-month grace interval (or till March 15, 2025) to spend your FSA cash
- The choice to roll over $640 of your FSA cash from 2024 to your 2025 account
If your employer does allow you to carry over cash from 2024 to 2025, that quantity doesn’t change your yearly contribution restrict, which is $3,300 in 2025.Â
Employers aren’t required to offer both FSA continuation choice to their workers. Every firm has its personal FSA guidelines, so examine together with your FSA plan administrator or human sources division for the precise particulars of your plan.
What can I spend my FSA cash on?
Medical remedy corresponding to physician and emergency room visits, insurance coverage deductibles and copayments, and prescription medicines are honest recreation. But there may be additionally a protracted checklist of authorised services and products which might be eligible for FSA protection.
While some FSA gadgets are mechanically eligible for everybody, different services and products require a letter of medical necessity (LMN) from a licensed doctor. The following checklist of FSA-eligible merchandise isn’t exhaustive, however it covers the entire main classes of medical and dental care that may be paid for with FSA cash:
Over-the-counter drugs: OTC drugs weren’t FSA eligible till the passage of the Coronavirus Aid, Relief, and Economic Security Act in 2020. Now, chilly, flu and allergy drugs, ache relievers like ibuprofen and acetaminophen, movement illness capsules, glucosamine sulfate for joint ache and different OTC drugs all qualify for FSA claims. First-aid kits and provides like adhesive bandages and antibiotics are additionally eligible.
The IRS added COVID-19 protections like face masks to the FSA eligibility checklist in 2021.
COVID-19: COVID-related merchandise corresponding to face masks, at-home checks and hand sanitizer qualify for FSA reimbursement.
Dental procedures and merchandise: Your dentures, implants, bridges and sealants are all lined by FSA, as are dental reconstruction and knowledge tooth removing. FSA funds normally cowl orthodontia, together with Invisalign. Veneers require an LMN from a dentist.
Vision: Not solely can you utilize your FSA funds for prescription eyeglasses and prescription sun shades, it’s also possible to use them for non-prescription studying glasses or blue-blocker glasses. Similarly, contact lenses and provides, together with cleansing resolution and lens circumstances, are eligible for FSA protection, as are cataract and laser eye surgical procedure.
Hearing: Your FSA cash can be utilized for listening to aids, in addition to batteries and upkeep for these aids. Telephones for the listening to impaired are additionally lined, as are merchandise like ear cleaners and wax removers.
Breathing: Respiratory merchandise corresponding to nasal spray, inhalers and vaporizers are eligible for FSA protection. With an LMN from a health care provider, air-con, air filters and air purifiers can all be eligible for reimbursement.
Sleep:Along with OTC sleep drugs, your FSA cash may also be used for CPAP machines for sleep apnea and mouth guards to forestall tooth grinding. Prescription sleep drugs can also be included. Items corresponding to pillows with lumbar assist or melatonin may be lined with an LMN from a health care provider.
Preventive screenings: Tests evaluating your well being may be paid for with FSA cash. Eligible screenings embody DNA testing, coronary heart scans, most cancers screening, diabetes screening, HPV and HIV screening, breast most cancers mammography screening and CT scans, and any blood checks that are not lined by insurance coverage.
Pregnancy and sexual well being: Most pregnancy-related gadgets and providers are eligible for FSA funding, together with being pregnant checks, prenatal nutritional vitamins, infertility remedies, intrauterine insemination and in vitro fertilization. Also lined: prices associated to egg donors, surrogates, and egg and embryo storage. Men can use FSA funds on vasectomy reversal and medicine for erectile dysfunction.
Babies: FSA funds cowl many newborn-related bills, together with breast pumps, lactation consultants, breastfeeding courses, breast milk storage luggage, diaper rash ointment, kids’s sunscreen and child respiratory displays. Infant components can qualify, however solely with an LMN from a health care provider.
Contraception: FSA funds can assist stop undesirable pregnancies as properly. Birth management capsules, tubal ligation, vasectomies and condoms are all eligible. Levonorgestrel-based “morning-after capsules” like Plan B One-Step or Take Action are eligible for FSA funding, as are all authorized abortion procedures, together with RU-486 capsules (mifepristone).
Menstruation: Pads, tampons, interval underwear, ache relievers and different menstrual provides all qualify as FSA bills.
Medical gear: Most merchandise for measuring well being are eligible for FSA cash. Examples are thermometers, blood strain displays, blood sugar check kits and pulse oximeters.
Batteries: Along with the medical gear itself, when you use batteries to energy medical gadgets, they’re FSA eligible.
Mental well being: You can use FSA cash for psychological well being remedies and providers, together with remedy and counseling in individual or on-line. Visits to psychologists or psychiatrists are eligible, as are psychiatric care and prescription drugs. Unfortunately, marriage and {couples} counseling aren’t eligible for FSA reimbursement.
Addiction: FSAs can cowl smoking cessation remedies and merchandise to assist quit smoking, like nicotine gum or patches. They may also cowl donations to Alcoholics Anonymous conferences and the price of transportation to attend, in addition to different substance abuse applications and remedy for playing dependancy. An LMN is required to cowl the price of staying at a midway home.
Weight loss: Weight-loss applications are eligible for FSA protection, as are gastric bypass or lap-band surgical procedures. Prescription medicine for weight reduction are additionally eligible.
Yoga mats and courses may be paid for with an FSA, however solely with a letter from a health care provider.
Physical health: Most health bills aren’t eligible for FSA protection except they’re prescribed by a doctor with an LMN. These bills, if physician really helpful, can embody private trainers, gymnasium memberships and yoga courses.
Athletic safety: If you are seeking to maintain your self protected and wholesome throughout athletic exercise, your FSA funds will cowl many gadgets, together with athletic tape, braces and bandages, cups, face masks and mouth guards.
Muscle remedy: Most bodily remedy is eligible for FSA funding, together with therapeutic massage gadgets at house. You may also use your FSA cash for carpal tunnel helps, again braces or heating and cooling pads.
Foot care: Even although you may’t use FSA funds for athletic footwear (regardless of how orthopedic) you may nonetheless use FSA cash for wholesome toes. Foot care merchandise corresponding to helps for prime or low arches and corn removers are a number of the gadgets eligible for protection.
Transportation: FSA cash can be utilized to pay for journey bills associated to medical care or recommendation, together with airplane tickets, fuel, mileage and upkeep prices, parking, bus or practice fares and lodging.
Alternative drugs: A couple of nontraditional medical merchandise and practices are eligible for FSA funding, together with acupuncture, chiropractic providers, homeopathy and holistic drugs.
Health-related house enhancements: If you could change your residing scenario to account for an harm or medical scenario, your FSA cash ought to be eligible for many of it, together with wheelchair ramps, seize bars, wider doorways, decrease kitchen cupboards or counters, and residential elevators,Â
Mobility: For assist getting round, FSA cash can cowl many merchandise, together with scooters, wheelchairs, crutches, canes and synthetic limbs. Modifications to autos may also be eligible for FSA reimbursement with an LMN from a health care provider.
Where can I purchase merchandise eligible for FSA spending?
You should buy FSA-eligible services and products wherever, so long as these merchandise qualify for reimbursement. Many main on-line retailers have created FSA-eligible sections that embody merchandise that may be purchased with FSA funds.Â
Amazon, CVS, Target, Walgreens and Walmart all have their very own FSA/HSA storefronts to make it simple to search out qualifying merchandise. You may also hook up your FSA or HSA card at Instacart for deliveries.
Walmart breaks down its FSA-eligible gadgets into a number of collections to make discovering merchandise simple. You can store by product class, kind of care or model identify, and the FSA retailer additionally features a checklist of top-selling merchandise.
Amazon’s devoted retailer for FSA and HSA accounts contains sections damaged out by classes of merchandise. The website additionally features a Learning Center with helpful data about spending accounts and the choice so as to add a devoted FSA or HSA card to your Amazon account.
Pharmacy chain Walgreens teams FSA-eligible merchandise into classes like different FSA shops, however it additionally throws in a bonus for year-end FSA spenders. From now till Dec. 31, 2023, you may get FSA-eligible gadgets at a 25% low cost — merely enter the code FSA25 at checkout (one use per order; three makes use of per account).
Retail pharmacy chain CVS maintains a bountiful assortment of FSA-eligible merchandise, lots of that are deliverable same-day. You can store merchandise by class or be taught extra about FSA or HSA accounts in a devoted FAQ.
Target is full of almost 3,000 FSA-eligible gadgets, and its web site makes it easy to search out and organize them with a number of distinctive search options. You can order merchandise to be delivered or picked up at a neighborhood retailer.
Grocery supply service Instacart brings FSA-eligible gadgets from pharmacies or your native market straight to your private home, working with main pharmacy chains CVS and Walgreens, in addition to 7-Eleven and most each different retailer in your space. You can combine non-eligible gadgets together with your FSA order, and new prospects get their first three deliveries with no price.
The Oura Ring is eligible for each FSA and HSA accounts. You should purchase the ring from varied retailers like Amazon or Target, or buy it instantly from Oura.
Therabody offers tons of expertise merchandise associated to wellness and wonder which might be eligible for FSA purchases.
Which bills cannot be paid for with FSA cash?
Despite the lengthy checklist of potential makes use of on your FSA cash, there are some medical and dental gadgets that do not qualify. Here is a listing of merchandise, providers and bills that aren’t eligible to be lined by FSAs:
- Adoption bills
- Athletic footwear
- Baby bottles
- Bug repellant
- Cannabidiol (CBD) merchandise
- Car seats
- Cotton swabs
- Dehumidifiers
- Dental floss
- Deodorant
- Hair regrowth or hair removing merchandise (together with electrolysis)
- Health or dental insurance coverage premiums
- Lactaid or different lactose-intolerance treatment
- Latex or nitrile gloves
- Liposuction
- Marriage counseling
- Mattresses
- Medical marijuana
- Paternity testing
- Protective goggles or security glasses
- Shampoo, cleaning soap, shaving cream or pores and skin moisturizer
- Smoke or carbon monoxide detectors
- Summer or athletic camps
- Tattoo removing
- Teeth whitening or bleaching
- Toothbrushes or toothpaste
- UV protecting gear
- Veterinarian prices
- Weight-loss dietary supplements
For extra Money Tips, find out about one of the best time to get low cost airplane tickets or how a lot you will obtain in Social Security advantages whenever you retire.
