10 FSA-Eligible Items to Buy Before Year-End
As the saying goes, “use it or lose it”. Don’t let that be you this year with your FSA dollars! Follow our guide below to stock up on FSA-eligible items to purchase before the end of the year.
What is an FSA?
A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows you to set aside pre-tax money to pay for certain out-of-pocket health care and dependent care expenses. Your employer may contribute to your FSA, but this is not a requirement.
How does an FSA work?
If you sign up for an FSA during your company’s open enrollment period, you’ll provide basic information and decide how much you want to contribute for the year. The annual contribution limit for an FSA is $3,050 in 2023. Once you’ve chosen your contribution amount for the year, you cannot change it. Your contributions are deducted pretax from each paycheck, and because the contributions come from pretax dollars, the money is deducted from your gross income.
At the beginning of the year, you are typically given an FSA debit card with a balance of the amount you contributed to the plan. This debit card can be used to make any qualified purchases for certain out-of-pocket health care and dependent care expenses. If you aren’t issued an FSA debit card or forget to use it for an eligible item or service, you can submit a claim at FSAFeds.com or through the FSAFEDS mobile app.
You have roughly one year to use the total sum contributed for the plan, or it becomes your employer’s money. However, there are 2 exceptions to this “use it or lose it” account: (1) Depending on your employer’s plan, the IRS may allow you to carry over up to $570 in 2022 and $610 in 2023; (2) Employers can offer employees a grace period of up to 2.5 months to use any leftover funds.
10 FSA-Eligible Items
Don’t let your FSA dollars go to waste! Check out these 10 FSA-eligible items you may need to purchase before year-end.
- First-Aid Supplies. Most first-aid supplies are FSA-eligible, including first-aid kits, Band-Aids, Neosporin, and thermometers. Additionally, most over-the-counter medicines like Tylenol, Claritin, and Mucinex are FSA-eligible.
- Eye Care. From contacts to eyeglasses and prescription sunglasses, most eye care is covered by FSA dollars. In addition to these eye basics, you can also use your FSA money on contact accessories like cleaning solutions and cases.
- Mom and Baby Products. This broad category encompasses many items including feminine hygiene products, birth control, pregnancy tests, fertility treatments, prenatal vitamins, breastfeeding supplies, baby health monitors, and more.
- Dental Procedures. Have you been putting off that teeth cleaning or root canal? If you have some FSA dollars burning a hole in your pocket, now may be the time to visit the dentist. Your FSA account covers the following dental procedures: teeth cleaning, root canals, fillings and sealants, crowns, bonding, dentures, extractions, and more.
- Ancestry and Health Kits. Surprisingly, you can purchase 23andMe with your FSA. 23andMe is a DNA health service that provides information on health predispositions, carrier status, wellness reports, and ancestry.
- Skincare Products. Many skincare products like sunscreen, acne products, prevention products, and hand creams are FSA-eligible.
- At-Home Covid Tests. ‘Tis the season for sickness. But luckily, at-home Covid tests are FSA-eligible. It may be a good time to purchase a few to have on hand just in case.
- Massage Guns. Though you may need a note from your doctor for approval, a massage gun may be a great tool to purchase with your FSA if you’re an athlete or just have sore muscles. Some options for massage guns include Theragun and Vybe Pro.
- Scales. If it’s recommended by a medical professional for the treatment of a diagnosed medical condition, a digital weight scale may be eligible.
- Shoe Inserts and Foot Care. Shoe inserts, arch braces, toe cushions, wart removers, and other foot grooming treatments like callus trimmers are FSA-eligible.