First and foremost, FSAs are offer tax savings on expenses you were going to incur anyway. The quick summary is that you decide an amount to contribute (deducted tax free, evenly from each paychecks) prior to the start of the plan's year. Then you submit receipts for any qualified medical expenses for reimbursement, up to the annual amount you elected. The catch is that any money not claimed during the year is lost! FSAs are best for expenses you are fairly sure you will incur. Several often overlooked but qualified expenses include mileage costs for doctor's visits and OTC medications.
What really amazes me is that more people do NOT take advantage of FSAs! Just among a small group of people I know at work I was the ONLY one participating. At first I thought they didn't understand that benefit, but it turned out they were just too lazy and were worried about the "use it or lose it factor." Three of them were people with kids so you KNOW they are going to be at the doctor a few times this year.
I still have about 55 dollars left in my flexible spending account from work and i am probably going to stock up on medicine. Ive read that hot pads and cold packs are even covered.
Over-the-counter drugs. Thank you, IRS, for deciding back in 2003 that allergy medicine, pain relievers, antacids, and a host of other medical goods available without a prescription are eligible for FSA spending. If your FSA year is coming to a close, check the dates on everything in your medicine cabinet and make a trip to the drug store to replace the expired ones. Also, anti-fungal creams make great Christmas gifts for the entire family, so stock up! Unfortunately. there’s one item that’s “missing” from the list of covered medications: vitamins. That said…
Vitamins … if your doctor says so. We’ve been told for years that a multi-vitamin as part of a balanced diet is good for us, and so millions of us take those vitamins without so much as a suggestion from a physician to do so. Instead, talk about vitamins with your doctor and convince him to give you a letter of medical necessity that will make those vitamins eligible for FSA coverage.
Baby factories. If you’re trying to crank out the kids and you find that you might need a little help from modern medicine, these expenses can be covered by your FSA. All the bases from extraction to injection are eligible: embryo and sperm storage, in-vitro fertilization, and even sperm washing! (I don’t think I want to know what that last one is.) Of course, if you’ve got all the children you want, or you’re happy keeping the kid count at zero, there’s also…
Condoms. While being a good Catholic boy keeps these out of my medicine cabinet, condoms and various other birth control implements are just screaming for your FSA dollars. Heck, I know a few people who could hit their employer’s FSA maximum every year with just this category! You can even get more permanent methods of birth control performed with FSA money.
Contact lenses and eyeglasses. Tired of running into walls and the wrong bathroom at work? It might be time for a new pair of prescription glasses or some contact lenses. They’re fully eligible, and they can even be used to start fires if you’re ever stranded on a desert island. Me, I’d like to be stranded on a dessert island, so I might need the next item when I make it back to civilization…
Weight loss programs. If your doctor tells you it’s time to lose that extra 600 pounds, you may be eligible to put FSA money toward the various costs associated with doing so.
Counseling. Depressed? Insane? Underperforming in the bedroom? Many types of licensed counselors are FSA-eligible and waiting to talk to you about your childhood or your obsession with sniffing women’s shoes.
Dancing lessons. Some doctors think dancing will help you recover from injuries faster, and they’ll sometimes even prescribe it! If they do, you’re in luck because you can use your FSA to pay for the lessons. Just please, don’t break a leg on purpose so you can learn to tango.
Flu shots. The best tax-free dollars you’ll ever spend on your health.
Laser eye surgery. I really wish this meant that you could get attachments to make lasers shoot out of your eyes, but being able to see better is nice, too. This can be pretty pricey and many insurance companies won’t foot the bill for it. Using your pre-tax FSA dollars is like a 10-30% discount for expensive elective procedures like this one.
Transferring medical records. Sometimes you’ll have to pay a small fee to have your old doctor send medical records to your new one. It’s probably just a few bucks, but why not use your FSA dollars instead of the ones in your wallet?
Orthodontia. If you’ve got four kids with crooked teeth and a big chunk of your weekly paycheck is going to paying for their braces or other orthodontia, use FSA dollars that might be forfeited at the end of the year on any such items you may have on an installment payment plan. Or just use FSA cash to pay for them in full at the time of purchase.
Alcohol treatment. Give the gift that keeps on giving: send your drunken spouse to a rehab clinic, and pay for it with his or her FSA dollars.
Swimming pool/spa. Remember how vitamins are eligible if your doctor gives you a note? So are swimming pools and spas! If you can convince your doctor (or your doctor convinces you) that a swimming pool or spa would be of benefit to your health, your FSA dollars can be used to pay for its installation and maintenance. I don’t think there’s a person alive who wouldn’t experience some health benefits from a swimming pool… well, maybe people with hydrophobia. Unfortunately, any “The government helped me pay for this pool” signs will have to come out of your own after-tax pocket.
Via punnymoney
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