Dec 29 2009

Using up last-minute FSA funds

With each of my husband’s monthly paychecks, we automatically deposit a set amount of money into our medical flexible spending account. This is through my husband’s company and it is a benefit of working there. Many workplaces offer FSAs.

This account reduces our income tax liability and sort of serves as an automated savings account for most of our medical spending needs.

We have a debit card to access the account and we’re able to use it for copays, prescriptions, eyeglasses, dental work and miscellaneous over-the-counter medical needs (and more!).

Since the money is from pre-tax dollars, it’s like getting a 15 percent discount, as we are in the 15 percent tax bracket.

We need to use our remaining 2009 funds by Thursday, or the money will be lost.

We have about $40 left, and I plan to spend it on things we’ll need for the coming year.

Some things I can buy include:

Allergy & sinus products, antacids, antibiotics, aspirin/pain reliever, bandages, cold sore treatments, chest rubs, cold & flu medicine, contact lenses/lens cleaner, cough drops/lozenges, cough syrup, nasal sprays, and more. Not vitamins, unfortunately.

You’ll need to consult the details of your own plan to make sure your items are covered. Two years ago, I bought some first-aid kits. This year, I’ll probably pick up some pain relievers, contact lens solution and contacts and maybe some more bandaids.

Be sure you are reimbursed for all eligible medical expenditures, and be sure you spend all your unspent funds if they don’t roll over!

For more information on why FSAs save you money, read my post here. For ways to extend your FSA dollars, check out my post here.

Do you use a flexible spending account?

2 Responses to “Using up last-minute FSA funds”

  1. I think that you have until March 15th of 2010 to use your FSA funds from 2011. I like your suggestion on stocking up on OTC medicines. We’ll probably do that and buy my husband’s contact lenses for the next year.
    .-= Mary Frances´s last blog ..Gluten Free Thanksgiving Recipes =-.

  2. Not all employers do the March 15th deadline. Incase others haven’t heard about it, its something the federal gov’t added a few years ago, approving the funds to be used for 14 months and 15 days, but they left it up to the employer to do it or not. My husbands job does do this. It can be very beneficial if you are doing a costly thing like braces or lasik, because you can split the cost over two years and have it done during that Jan 1 to March 15 time frame.

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Hey! I'm Kacie, wife to Shane and mother to Jonathan (7), Vivienne (5) and Amelia (2) . I write about my family's finance: how we save money, improve our spending, and plan for the future.

I hope I can inspire and encourage you to improve your situation. See disclosure.

I'm adopting a much slower-paced posting schedule, and treating this as a hobby blog now.

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