You could have some more money to spend now that the year's conclusion is approaching.
No, you did not read that incorrectly. Many Americans have money in their flexible health spending accounts that they must spend before the year is out.
FSAs, which are frequently provided by your employer as a benefit, provide you the choice of depositing money directly from your paycheck, tax-free, into an account to be used for paying for medical-related expenditures all year long. In 2020, each individual might contribute a maximum of $2,750.
The savings might pile up because these monies are not taxed. According to an estimate from TurboTax, investing $2,000 in an FSA account can save you $600 if you make $50,000 per year and pay a 30% tax rate.
FSAs work on a "use it or lose it" basis, in contrast to health savings accounts (HSAs), which are typically utilized when you have a high-deductible health insurance plan and let consumers roll over their savings year after year. Some employers permit employees to carry over a specific amount into the next year, while others demand that employees use up their savings by a specific deadline.
Don't panic if you have an excess of cash on hand, especially considering how many Americans postponed or skipped doctor visits and other non-emergency medical treatments this year. To find the daily necessities you may require, you may explore websites like the FSA Store, HealthProductsForYou, or even Amazon's FSA Store.
Check out some of the more unexpected goods you may buy with your FSA balance this year in the list below.
1. Acne treatments: You may probably use your FSA funds to pay for any over-the-counter acne treatments, cleansers, or serums you use. Look for products with ingredients like salicylic acid, benzoyl peroxide, or azelaic acid, or brands like Clean and Clear, Neutrogena, and Proactiv.
2. Products that improve air quality: Although not specifically intended as medical devices, air conditioners, air purifiers, and air filters may be eligible for purchase using FSA money if your healthcare professional can describe how they would be used to treat a medical condition.
3. Practices in alternative medicine: The majority of individuals may use their FSA funds, for instance, on visits to a chiropractor and an acupuncturist.
4. Health report-equipped ancestry kits: Are you curious about your ancestry and how your DNA may impact your health? You are fortunate. Typically, health report-inclusive ancestry kits like 23andMe are regarded as FSA-eligible purchases.
5. Creams that fight germs: Stock up on antibacterial ointments like Neosporin or Bacitracin, which you may buy with FSA funds, for the next time you have a cut or scrape. Actually, first aid kits, which frequently contain antibiotic ointments, are also entitled to reimbursement.
6. Baby supplies: After having a baby, life may become quite costly, so utilizing your FSA funds to reduce expenses is a wise choice. Typically, items for new moms, such as post-delivery wraps, breast pumps, and nursing equipment, are also eligible for reimbursement. Examples of these products include baby monitors, baby sunscreen, potty-training underwear, and thermometers.
7. Dental treatments: In most cases, you can use your FSA funds to pay for dental services, including the co-pays or out-of-pocket costs related to everything from routine cleanings to procedures like fillings, root canals, crowns, and even gum surgery. This includes basic cleanings as well as filings, root canals, and gum surgery. However, typical dental care items like toothbrushes, toothpaste, and floss are frequently ineligible for purchase using FSA dollars.
8. Eye treatment: FSA plans normally include coverage for vision costs, and in most circumstances, you may use your FSA funds to pay for contacts, eyeglasses, and contact accessory costs like cleaning solutions and cases, as well as contacts themselves. Sunglasses that are prescribed may even be covered.
9. Hygiene items for women: The Coronavirus Aid, Relief, and Economic Security Act has made it possible for this year's qualified items to fall into a new (but long-delayed) category. Pads, tampons, liners, and even disposable and non-disposable period underwear can now be purchased using FSA funds. Menstrual cups and the Flex Disc are two more period alternatives that you may purchase.
10. The after-dinner pill: Most drugstores and pharmacies sell the morning-after pill over-the-counter without a prescription; this makes it an FSA-eligible purchase.
11. Nicotine chew and patches: You can spend your FSA money on nicotine gum, patches, lozenges, inhalers, and nasal sprays if you're attempting to stop smoking.
12. Drugs sold without a prescription: Over-the-counter medications, including those for treating allergies, heartburn, and discomfort, are now also eligible for FSA purchases, which is another benefit of the CARES Act.
13. Family planning and pregnancy supplies: Typically, products like condoms and reproductive procedures like IVF are eligible, as are things like pregnancy tests, monitors, prenatal vitamins, and lactation supplies. Also included in this category are doulas who have received medical certification and birthing programs. Additionally, you are permitted to utilize FSA dollars for contraception, but a valid prescription is required.
14. Inserts for shoes: Your shoe inserts may qualify as an FSA purchase if you think you need a little more support in your shoes. Orthopedic shoe inserts often qualify if they're being utilized to treat, relieve, or prevent a medical ailment or illness. According to the FSA Store, arch support is the one that is used the most frequently.
15. Sunscreen: Depending on where you live, you might not need a bottle of sunscreen in December, but it can be worthwhile to stock up and use your FSA dollars to do so. Any broad-spectrum sunscreen with SPF 15 or higher qualifies. And it also applies to moisturizers with SPF protection at that level. Remember that sunscreen has a three-year shelf life, even if you don't need it right now.
Correction: An earlier version of this story stated wrongly that hand sanitizer qualifies for the FSA. Legislation to include these items is presently the subject of a petition.
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