Utilizing Your FSA Funds before the New Year

What is a flexible spending account?

A Flexible Spending Account (FSA) is a type of account that may be offered as part of your employee benefit package. An FSA allows employees to put some of their earnings aside to pay for qualified expenses, before taxes are deducted from their paycheck.

There are three main types of FSAs. Dependent Care FSAs are used for childcare expenses, and limited purpose FSAs are used for dental and vision care. We’ll focus on healthcare FSAs, which can be used for a wide range of medical expenses. You’ll learn more about your FSA and how to use it effectively.

Important Plan Information

There are some important things to know about your healthcare FSA, including eligible expenses and spending deadlines.

Tax Savings: Contributions to an FSA are made before taxes, which reduces your taxable income. The IRS sets annual contribution limits for how much you can add to your account each year.

Deadline for using Funds: Check your plan to verify your deadline for spending your FSA funds – it’s usually the end of the calendar year. After the deadline, any money remaining in your account is forfeited, so it’s important to use it. Some plans may offer a grace period of up to two and a half months to use your funds or allow up to $660 to roll over to the next year.

Don’t Confuse your FSA with an HSA: Funds in an HSA (Healthcare Spending Account) roll over from year to year without limit. This is not the case for FSAs.

What expenses are FSA eligible?

The products and services you purchase with your FSA must be within the list of eligible expenses. Healthcare FSAs can be used for a wide range of qualified medical expenses, such as:

• Medical visits, including copays and deductibles

• Hospital services

• Diagnostic services like blood tests, x-rays and ultrasounds

• Therapy and counseling

• Dental care such as cleanings, fillings and orthodontics

• Vision care, including prescription glasses, contacts and eye exams

• Prescription medications

• Over-the-counter medicines (with a prescription only)

• Personal medical equipment and first aid supplies
  
  

For healthcare FSAs, funds must be specifically used to diagnose and address medical conditions. Check the rules of your specific FSA plan to ensure the eligibility of each expense.

Spending Strategies

If you’re getting close to the end of your FSA term, make a plan to spend your balance before it’s lost. Here are some medical expenses you can consider using your remaining funds for:


Medical appointments and check-ups: If you’ve been putting off a doctors’ visit or you’re overdue for a checkup, now is the time to fit one in. Consider getting physicals, screenings and vaccinations before the new year. If your doctor’s office is busy, try your local urgent care center for faster service.

Prescription medications: Refill any ongoing prescriptions, and stock up on over-the-counter medications you regularly use. These could include allergy relievers, cold and flu medications and painkillers. Be sure to get a prescription for these purchases to be eligible for reimbursement.

First aid supplies: Stock up on bandages, thermometers and other first aid necessities.

Medical equipment: You can spend your FSA funds on a wide range of medical equipment. Examples are blood pressure monitors, orthopedic supplies and knee braces.

Dental treatments: Get dental work done, such as cleanings, fillings or braces.

Vision care: Schedule an eye exam. Purchase prescription sunglasses, glasses or contact lenses.

Medical Treatments: Book appointments with professionals like physiotherapists, chiropractors or acupuncturists before the year’s end.

Preventive Services: Catch up on preventative screenings, as well as vaccines for illnesses like COVID-19 and the flu. Check with your doctor if you’re not sure which services you’re due for.

Remember, WellNow is FSA Eligible

December is busy, but WellNow Urgent Care is here for you. With short walk-in wait times, extended hours and often same-day appointments, you can get the care you need before your FSA funds expire. Visit us online or in person today for FSA-eligible services like medical exams, diagnostic tests, prescriptions and more.


WellNow Urgent Care is a series of urgent care clinics and virtual care serving the Midwest and Northeastern United States in Illinois, Indiana, Michigan, New York and Pennsylvania.

Information contained in this blog is for informational or educational purposes only and does not substitute professional medical advice or consultations with healthcare professionals. The content is not meant to be complete or exhaustive or to apply to any specific individual's medical condition. Always refer to the personalized information given to you by your doctor or contact us directly.