Exploring the Versatile Uses of Your Flexible Spending Account- What You Can Spend It On!_1

What can I spend my 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. However, many people are unsure about what they can actually spend their FSA funds on. In this article, we will explore the various eligible expenses that can be covered by your flexible spending account.

Healthcare Expenses

The primary purpose of a flexible spending account is to cover healthcare expenses. This includes costs for doctor visits, prescription medications, dental care, and vision care. You can use your FSA funds to pay for copayments, deductibles, and coinsurance for these services. Additionally, certain over-the-counter medications and supplies can be purchased with FSA funds, as long as they are deemed eligible by the IRS.

Prescription Medications

Prescription medications are a common and essential expense that can be covered by your FSA. This includes both brand-name and generic drugs. You can use your FSA funds to pay for the full cost of your prescriptions, as well as any related costs such as delivery fees or mail-order shipping.

Over-the-Counter Medications

While over-the-counter medications are generally not eligible for FSA reimbursement, there are certain exceptions. To be eligible, the medication must be prescribed by a doctor or meet specific criteria set by the IRS. Common eligible over-the-counter items include allergy medication, pain relievers, and diabetes supplies.

Dental and Vision Care

Flexible spending accounts can also be used to cover dental and vision care expenses. This includes costs for routine check-ups, cleanings, glasses, contacts, and laser eye surgery. It’s important to check with your specific FSA plan to determine which dental and vision services are eligible.

Dependent Care Expenses

In addition to healthcare expenses, flexible spending accounts can also be used to cover dependent care expenses. This includes costs for childcare, eldercare, and other dependent care services. You can use your FSA funds to pay for day care, before-and-after-school programs, and summer camp.

Eligible Expenses for Tax-Advantaged Savings

It’s important to note that not all healthcare expenses are eligible for FSA reimbursement. To be eligible, the expense must be considered a qualified medical expense by the IRS. This includes costs that are not covered by your health insurance plan or that exceed your deductible.

Conclusion

Flexible spending accounts offer a valuable opportunity to save on healthcare expenses. By understanding what you can spend your FSA funds on, you can make the most of this tax-advantaged benefit. Be sure to review your plan’s specific guidelines and consult with your employer or a tax professional if you have any questions about eligible expenses.