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!
Do you use a flexible spending account?