The Daily Deduction

Spend Your FSA Money

If you've got money in your Flexible Spending Account, you must use it before Dec. 31 or you'll lose all that money.
 

Here is a brief list of eligible expenses:

  • Acupuncture
  • Eye exams, eye surgery, vision items such as contact lenses, contact solution, prescription sunglasses, and eyeglasses
  • Inpatient treatment for alcohol addiction and, in some cases, transportation to and from Alcoholics Anonymous meetings
  • Home improvements to accommodate a home to the disabled condition of the employee, a spouse, or dependent, such as constructing exit ramps or adding grab bars
  • Fertility treatments
  • Prescription medications, including birth control pills

Be sure to keep your receipts for all of your expenses.

FSAs in 2013 will limit the potential tax savings by placing a $2,500 per-year cap on healthcare FSAs. (Dependent care FSAs are not subject to this cap, but HSAs have their own caps.)

The limit applies to plan years starting January 1, so employers with FSAs based on the fiscal year can choose to keep the higher reimbursement limit in effect through the end of the 2012-2013 plan year.

Posted To: The Daily Deduction By: Lauryn on 12/19/2012 03:50:00 PM
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