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Flexible Spending Accounts (FSAs) offer a valuable way to save money on healthcare expenses. As the year-end approaches, it is important to review your FSA to maximize your benefits before the deadline. Proper planning can help you save a significant amount on eligible expenses.
Review Your FSA Balance
Check your current FSA balance to understand how much funds are available. Many FSAs have a use-it-or-lose-it policy, meaning unused funds may be forfeited at the end of the year. Confirm your balance through your employer or FSA provider portal.
Plan Eligible Expenses
Identify upcoming healthcare expenses that qualify for FSA reimbursement. Common eligible items include:
- Doctor visits and prescriptions
- Dental and vision care
- Eyeglasses and contact lenses
- Over-the-counter medications
- Medical supplies and equipment
Make Last-Minute Purchases
If you have remaining funds, consider making necessary purchases before the deadline. Some providers allow you to submit claims after the year-end, but check your plan’s specific rules. Keep receipts for all eligible expenses.
Use Grace Periods or Carryovers
Some FSAs offer a grace period or carryover option. A grace period typically extends the deadline by 2.5 months, while a carryover allows you to transfer up to a certain amount of unused funds to the next year. Review your plan details to take advantage of these options.