Guide On Spending FSA Money Before The End of The Year - CWI Medical

Those fortunate enough to have a flexible spending account (FSA) will be aware that there is a deadline by which to spend these annual funds. Your FSA money is put aside for medical expenses, and it will be forfeited if not used by your plan’s deadline. December 31 – the end of the year – is the most common FSA deadline. It is estimated that more than $400 million a year is forfeited annually, as employees forget about their spending deadlines, or miss them. Since we’re only a few months away from 2022, now is the ideal time to learn how to spend FSA money before the end of the year.

How Does FSA Work

If you do not spend the money in your FSA account by the end of the year (or your relevant deadline), you risk losing it for good. However, the introduction of the Covid relief bill means that any FSA money you accrued in 2021 is still available for use until the end of 2022. Notice 2021-15 basically states that employers have more flexibility over the FSA plan; as a result, deadlines were extended for a year in 2020, 2021 and 2022.

What Can You Spend FSA Money On?

FSA funds can be used for medication (including both prescription and over-the-counter medication) and doctor’s appointments. There are also various other health care items and services which are eligible for you to spend your funds on. The FSAFEDS database, run by the U.S. Office of Personal Management, is a great place to start. The system is easy to navigate and clearly states which products are eligible, ineligible, or eligible only with a doctor’s prescription or note.

Home care websites often section their FSA-eligible items for your easy navigation. Wherever you choose to spend your FSA money, it is vital that you store your itemized receipts so that you have proof of purchase in case you are ever denied a charge.

Some Items to Spend FSA Money On

Some items that you can purchase with your FSA funds include:

Thermometers
Sunscreen
Vitamins
High-tech healthcare
Feminine care
Ovulation predictors
Travel pillows
Nausea relief bands

As you can see, the list has a large variance – you’re sure to find something you need that you can spend your FSA money on. Other products that you can buy include Felix Gray or Warby Parker glasses – as long as your FSA card is affiliated with a major credit card. Do note that the latest Affordable Care Act requires that over-the-counter medications come with a doctor’s prescription to allow you to claim FSA reimbursement, so be sure that you get a doctor’s note before you get your Advil or Benadryl.

Another popular item to spend your FSA funds on are at-home Covid 19 tests. These are available over the counter, and you can buy them in bulk with your FSA money, in case you end up needing some over the year ahead. Your FSA card can also be used to purchase Covid supplies such hand sanitizers and masks. If you still have any uncredited FSA funds in your account today, be sure to spend them before the end of the year so that your money does not go to waste.