What can you spend flexible spending account on?
Flexible spending accounts (FSAs) are a popular employee benefit that allows individuals to set aside pre-tax dollars for certain healthcare expenses. But what exactly can you use your FSA funds for? Here’s a comprehensive guide to help you understand the eligible expenses you can pay for with your FSA.
Healthcare Expenses
The primary purpose of an FSA is to cover healthcare expenses. These include:
– Doctor visits and consultations
– Prescription medications
– Over-the-counter (OTC) medications with a prescription
– Dental and vision care
– Contact lenses and lens care solutions
– Wheelchairs, crutches, and other medical equipment
Prescription Drugs
One of the most common uses of an FSA is to pay for prescription medications. This includes both brand-name and generic drugs. If you have a prescription for a medication, you can use your FSA funds to cover the cost.
Over-the-Counter Medications
While you can’t use your FSA to purchase OTC medications without a prescription, you can use your FSA funds for OTC medications that require a prescription. This includes items like allergy medication, pain relievers, and cough syrup.
Medical Supplies
FSAs can also be used to purchase medical supplies that are necessary for the treatment of a specific medical condition. This includes items like insulin pumps, glucose monitors, and other diabetes supplies, as well as items like blood pressure monitors and nebulizers.
Healthcare Services
In addition to medications and supplies, you can use your FSA to pay for various healthcare services. This includes:
– Physical therapy
– Chiropractic care
– Acupuncture
– Massage therapy
– Nutritional counseling
Dependent Care Expenses
FSAs can also be used to cover dependent care expenses for eligible dependents. This includes expenses for child care, elder care, and adult day care. To be eligible, the dependent must be under the age of 13 or physically or mentally incapable of self-care.
Eligible Expenses for FSA Contributions
It’s important to note that not all healthcare expenses are eligible for FSA contributions. Some common non-eligible expenses include:
– Health insurance premiums
– Insurance deductibles
– Non-prescription vitamins and supplements
– Haircuts and grooming services
Conclusion
Understanding what you can spend your flexible spending account on is crucial for maximizing the benefits of this valuable employee benefit. By utilizing your FSA funds for eligible healthcare expenses, you can reduce your taxable income and save money on out-of-pocket healthcare costs. Always consult your employer or FSA administrator for the most up-to-date information on eligible expenses and contribution limits.
