Some people think there are too few surprises in life, but here’s something that may surprise you: the vast array of eligible expenses for your Federal Spending Account (FSA).
First, a word on what’s an FSA: an FSA is a pre-tax benefit account that's used to pay for eligible medical, dental, and vision care expenses that are not covered by your health care plan or elsewhere. Because the money is deducted up front, the employee’s taxable income is lower and overall income taxes can be substantially reduced.
The open season period for FSAFEDs is right now—the same time as open season for federal health insurance plans and FEDVIP dental and vision benefits. Employees will be able to put more income into their health care flexible spending accounts in 2017, when the FSA contribution limit rises to $2,600.
Now here comes the surprise: there are a lot of different products and services that are considered FSA eligible expenses—and some you wouldn’t have considered. For example, acupuncture, bandages, contact lenses, vaccinations and sunscreen are all generally covered. There are about 300 different categories of expenses that can be easily searched here: www.FSAfeds.com. There is a handy color-coded chart for easy scanning to help you determine if an expense is eligible with a receipt, not eligible or eligible with appropriate documentation (such as Letter of Medical Necessity or a prescription).
And remember: even though an item may be found in the listing, it does not guarantee reimbursement. Still, not taking advantage of FSAs could be you’re missing out on thousands of dollars in savings each year.
For more information, visit www.FSAfeds.com.