A flexible savings account (FSA) is a benefit offered by some employers that allows you to set aside money from your paycheck, tax-free, to pay for medical expenses throughout the year.
The maximum contribution limit for an FSA in 2022 is $2,850. These contributions are pre-tax, so you can save money by contributing to an FSA. However, unlike health savings accounts (HSAs), which allow you to roll over savings from year to year, FSAs operate under a "use it or lose it" structure, meaning you must use the funds by a specific date, or they will be lost.
Suppose you have leftover funds in your FSA and are wondering what to purchase with them. In that case, you can check out sites like FSA Store, HealthProductsForYou, or Amazon's FSA store to find everyday items that may be eligible for reimbursement.
There are many surprising products that can be purchased with FSA funds. Here’s a look at some of those items:
1. Medication. Under the CARES Act, it is now possible to use money from a flexible spending account (FSA) to purchase medication. Some examples include chlorhexidine gluconate, used to treat gingivitis, another name for mild gum disease. Colgate PreviDent Brush-on Gel, a 1.1% neutral sodium fluoride brush-on gel designed for at-home use by all patients who require extra-strength fluoride protection. And MI Paste Plus, a topical creme with fluoride that helps strengthen and rejuvenate teeth.
2. Air quality products. Air quality products such as air conditioners, air purifiers, and air filters may be eligible for purchase with funds from a flexible savings account (FSA) if used to address a medical condition. It is important to note that these products are not typically considered medical devices. Still, they may be covered under certain circumstances if used to treat or alleviate a medical condition.
3. Alternative medicine procedures. Many people can use their FSA funds to pay for alternative medicine treatments like acupuncture and chiropractor visits. FSAs can cover a wide range of medical expenses, including co-pays, out-of-pocket costs, and other expenses associated with medical care.
4. Ancestry kits with health reports. Are you looking to learn about your ancestry and how your DNA can influence your health? If so, you may be able to use your FSA to purchase a DNA testing kit from a company, such as 23andMe, that includes health reports.
5. Antibacterial ointments. Make sure you're prepared for any future cuts or scrapes by purchasing some antibacterial ointment, like Neosporin or Bacitracin, using your FSA funds. You can also get a first aid kit, which often includes antibacterial ointment, and use your FSA funds to reimburse the cost.
6. Baby products. Once you have a newborn, expenses can add up quickly. Utilizing your FSA can help reduce these costs. Some products that can be reimbursed through your FSA include baby monitors, baby sunscreen, potty-training underwear, and thermometers. Additionally, products for new mothers, such as post-delivery wraps, breast pumps, and nursing supplies, may also be eligible for reimbursement.
7. Dental procedures. You can generally use your FSA funds to pay for dental treatments, including co-pays or out-of-pocket expenses for procedures such as cleanings, Invisalign, implants, fillings, root canals, crowns, and gum surgery.
8. Eye care. Typically, vision expenses can be paid using funds from an FSA. This includes the purchase of eyeglasses, contacts, and related accessories like cleaning solution and cases. In some cases, even prescription sunglasses may be eligible for coverage.
9. Feminine hygiene products. This year, a new category of products has been created due to the Coronavirus Aid, Relief, and Economic Security Act. These eligible products include pads, tampons, liners, disposable and non-disposable period panties, and alternative period products like menstrual cups and the Flex Disc. This change has been long overdu e.
10. The morning-after pill is easily accessible without a prescription at many drugstores and pharmacies, and it is considered a reasonable expense for Flexible Spending Accounts.
11. Nicotine patches and gum. You can use your FSA funds to help you stop smoking by purchasing nicotine replacement products such as gum, patches, lozenges, inhalers, and nasal sprays.
12. Acne treatments. Brands such as Clean and Clear, Neutrogena, Proactiv, and products containing ingredients like salicylic acid, benzoyl peroxide, or azelaic acid may be eligible. It is essential to check with your medical provider or plan administrator to determine what products are covered by your FSA.
13. Pregnancy and family planning products. You can use your FSA funds to purchase pregnancy-related products like pregnancy tests, fertility treatments, monitors, prenatal vitamins, and breastfeeding supplies. Condoms and services like birth classes and medically certified doulas are also eligible for FSA coverage. It is important to note that you will need a current prescription to use your FSA funds for birth control.
14. Shoe inserts. If you need additional support in your shoes to address a medical condition or disease, your shoe inserts may be covered by your FSA. Arch supports are the most common orthopedic shoe insert eligible for FSA coverage.
15. Sunscreen. Even if you don't usually use sunscreen in December due to the location you live in, it might still be a good idea to purchase some and use your FSA funds. Any sunscreen that provides SPF 15 or higher protection is eligible for FSA coverage, including moisturizers with this level of SPF protection. Keep in mind that sunscreen has a shelf life of three years, so you can buy it now even if you don't plan on using it immediately.
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