What to Spend Leftover FSA Money On
If you have leftover funds in your Flexible Spending Account (FSA), you might be wondering what to do with them before the end of the plan year. FSAs are designed to help employees cover out-of-pocket medical expenses, but they often come with strict deadlines and limitations. In this article, we will explore various options for what to spend leftover FSA money on, ensuring that you make the most of your tax-advantaged funds.
1. Prescription Medications and Supplies
One of the most common uses for FSA funds is to cover prescription medications and supplies. If you have any prescriptions that you haven’t used yet, now is the perfect time to fill them. This includes both brand-name and generic medications. Additionally, you can use your FSA to purchase over-the-counter medications, such as allergy remedies, pain relievers, and first aid supplies.
2. Dental and Vision Care
Dental and vision care can be expensive, and FSAs can help alleviate some of the financial burden. Consider using your leftover funds to pay for dental exams, cleanings, braces, or vision exams, glasses, and contacts. It’s important to note that certain FSA-eligible expenses, such as LASIK surgery, may not be covered, so be sure to check your plan’s guidelines.
3. Health and Wellness Products
Investing in your health and wellness can be a wise use of your leftover FSA funds. You can purchase fitness equipment, such as treadmills, elliptical machines, or yoga mats, to help you stay active at home. Additionally, you can buy supplements, vitamins, and other health-related products that may contribute to your overall well-being.
4. Preventive Care Services
FSAs can be used to cover a wide range of preventive care services, such as vaccinations, screenings, and annual physicals. If you haven’t taken advantage of these services yet, now is the perfect opportunity to do so. Preventive care can help detect potential health issues early, potentially saving you money on more costly treatments in the future.
5. Health Insurance Premiums
Some FSAs allow you to use your funds to pay for health insurance premiums. This can be a great way to reduce your out-of-pocket expenses, especially if you have a high-deductible health plan. Be sure to check your plan’s guidelines to see if this option is available to you.
6. FSA Store Purchases
The FSA Store offers a wide range of eligible products and services, from over-the-counter medications to personal care items. Take advantage of any promotions or discounts available to maximize your savings. You can also find unique items that may not be covered by your FSA, such as health and wellness gadgets or travel-related products.
7. Health Savings Account (HSA) Contributions
If you have a Health Savings Account (HSA), you can use your leftover FSA funds to make contributions. HSAs offer tax advantages for saving for future medical expenses, and combining your FSA and HSA can provide even greater financial benefits.
In conclusion, there are many ways to spend leftover FSA money. By taking advantage of these options, you can ensure that your tax-advantaged funds are used efficiently and effectively. Remember to check your plan’s guidelines and deadlines to avoid any penalties or forfeitures. Happy spending!
