Use or Lose Your FSA

Use or Lose Your Flexible Spending Account

The end-of-the-year holidays are full of hustle and bustle, but there’s one tax task you definitely don’t want to overlook in the holiday rush. If you have a medical flexible spending account, or FSA, be sure to check its balance — and check with your benefits department — to make sure you don’t end up losing that money.

These workplace-provided accounts are popular for a couple of reasons because you can use the funds in these accounts to pay for items and services that aren’t covered by your health insurance. In addition, the saving process also saves you tax dollars. You make FSA contributions via regular, equal payroll deductions so the amounts are taken from your paycheck before your withholding taxes are calculated, meaning you take a savings on federal income and Social Security taxes up front.

The only drawback is one that’s easy to avoid: Use the money by the end of your benefits year, which for most people is Dec. 31, to avoid losing it.

Eligible FSA expenditures

The most common uses of FSA money are for payment of insurance copays and exams that aren’t covered under your insurance.

Vision exams are popular during this time of year. Most of us could use an extra pair of glasses or, for fun, prescription colored contact lenses. Don’t forget about regular eye exams or comprehensive vision screenings. Each of these expenditures could help you draw down your FSA.

If you have funds left in your flex spending account or need to use your vision plan benefits, call Georgia Eye Institute. Our optical shop is open Monday through Friday from 8:00am to 5:00pm, and on Saturdays from 8am-11am. Stop by and order your new glasses before time is up.

 

Portions of this post Use or lose your flexible spending account appeared first on http://www.bankrate.com/ by Kay Bell