Don’t Lose Your Flexible Spending Account Money Before the Deadline!
If you elected to fund an FSA account with pre-tax dollars during last year’s open enrollment, don’t panic yet! You have until the end of the year to spend your money or it will disappear. But, being strategic can still help you avoid common mistakes. Here are three pitfalls to steer clear of near the deadline.
Firstly, don’t think you’re out of time! Your company may have a plan year that runs throughout the year, or offer a two-and-a-half-month grace period or carryover option. Clarify your deadline by asking your HR department or FSA administrator. You may still have time to use your funds to buy eligible items.
Secondly, don’t overlook health-tech items! New wearable technology that can help with health and illness prevention is FSA-eligible. Check online stores like FSAStore.com and Amazon’s FSA Store for eligible devices. However, ensure you follow your FSA administrator’s requirements, such as obtaining a letter of medical necessity from your doctor.
Lastly, don’t ignore over-the-counter medications and menstrual products! Since the 2020 CARES Act, these items are covered by FSA funds. Simply keep your receipts for reimbursement and documentation purposes, even if it’s not initially required.
Use your FSA funds wisely before the deadline!