What can I spend my FSA money on?
Flexible Spending Accounts (FSAs) are a popular employee benefit that allows individuals to set aside pre-tax dollars for qualified medical expenses. With the tax advantages and potential for significant savings, many people wonder what they can actually spend their FSA money on. In this article, we will explore the various eligible expenses that can be paid for using funds from your FSA.
Medical Expenses
The primary purpose of an FSA is to cover out-of-pocket medical expenses that are not covered by insurance. These expenses include, but are not limited to:
– Prescription medications
– Over-the-counter (OTC) medications with a prescription
– Contact lenses and solution
– Dental care, such as cleanings, fillings, and braces
– Vision care, including glasses and eye exams
– Co-pays and deductibles for medical services
– Hospital stays and procedures
Dependent Care Expenses
FSAs can also be used to cover dependent care expenses for eligible dependents under the age of 13 or for disabled dependents of any age. Eligible dependent care expenses include:
– Daycare services for children
– Before-and-after-school care
– Summer camp
– Babysitting services
– Adult day care for elderly or disabled dependents
Health Insurance Premiums
Another benefit of FSAs is the ability to use funds to pay for health insurance premiums. This includes:
– Individual health insurance premiums
– Health savings account (HSA) contributions
– Long-term care insurance premiums
Qualified Medical Equipment
FSAs can be used to purchase certain medical equipment that is necessary for the treatment of a medical condition. Eligible items include:
– Wheelchairs
– Crutches
– Walkers
– Nebulizers
– Blood glucose monitors
Health and Fitness Expenses
FSAs can also be used to cover certain health and fitness expenses, such as:
– Gym memberships
– Fitness classes
– Personal training sessions
– Weight loss programs
– Health club dues
Eligibility and Restrictions
It is important to note that not all expenses are eligible for FSA reimbursement. Eligible expenses must be deemed necessary for the prevention or treatment of a medical condition. Additionally, some expenses may have specific limitations or restrictions. Always check with your employer or FSA administrator for the most up-to-date information on eligible expenses.
In conclusion, FSAs offer a valuable opportunity to save on out-of-pocket medical expenses. By understanding what you can spend your FSA money on, you can make the most of this tax-advantaged benefit and ensure that you are covering the costs that matter most to you and your family.
