What's a flexible
spending account and can I use it to help cover the cost of eye care?
A flexible spending
account (FSA) is a special account that you can put money into and then use
to pay for eligible out-of-pocket health-related expenses. You do not need to pay taxes on the funds you contribute to your FSA,
which is what makes it an attractive option for many Americans. (See more information about how
FSA’s work in this document released by the IRS)
Eye care, including
vision correction, is considered an FSA-eligible expense. This applies to
services and products. FSA-eligible
vision care services include routine eye exams and medically-necessary
treatments such as eye surgery. FSA-eligible eye care products include contact
lenses, prescription eyeglasses, eye drops, contact lens solution and cases,
and even eyeglass repair kits.
FSAs can be used to pay for certain medical and
health-related expenses, including co-pays and deductibles, for you, your
spouse and your dependents. It is a flexible
and often beneficial way of helping to cover costs of necessary health care
services or products that may not have full coverage under a health insurance
plan.
But there is a
catch…
Generally, the money you’ve contributed to your FSA must be
used within the plan year. There may be exceptions to this, depending on your
employer. Some FSA users may be able to carry over up to $500 to use in the
following year and/or may be given a “grace period” of up to two additional
months to use the money in an FSA before it expires, and a new plan year
begins.
The fact remains:
Flexible spending accounts can be a wonderful way to help save money by paying
for eligible expenses with income that is untaxed.
Use it, or lose it – most FSA plans are valid
from January 1 – December 31. The end of the year is a great time to use any
remaining balance in your FSA towards eligible expenses