Employees will have to use up any remaining Flexible Spending Account (FSA) money by the end of the year – or lose it. Here are some ways to make sure no cash they’ve set aside goes to waste.
- Find out everything that’s eligible. FSA participants should leave no stone unturned and stock up on any meds or supplies they may use in the near future. Things it’s smart to stock up on: Band-Aids, contact lenses and solution, diabetes supplies, cold and flu meds, and pain relievers. A comprehensive list of what expenses are eligible is available here.
- Make a doctor’s appointment. Has everyone in your family received their routine checkup? Have you been to the dentist recently? FSA money can be used to cover deductibles and copays for these visits.
- Get a flu shot. Another good use of FSA money — getting yourself and your family vaccinated against the flu.
- Do a little preventive maintenance. FSAs can be used to pay for chiropractic care and smoking cessation/weight-loss expenses.
- Keep track of travel. FSA money can even be used to reimburse you for the expenses related to travel for medical care. You can be reimbursed 16.5 cents per mile for travel to and from doctor visits.
Regs to change
Another good reminder for employees: Beginning Jan. 1, 2011, FSAs will no longer be able to reimburse expenses for over-the-counter meds — unless they’re insulin, or prescribed by a doctor — making it that much more important that they stock up on those meds now.
And recently the Internal Revenue Service issued guidance to help clarify some of the most perplexing parts of the new reimbursement restrictions. You can see HR Morning’s breakdown of that guidance here.
