Ways to spend FSA funds before they expire January 1
HOUSTON - Time is running out fast to spend any money left in your Flex Spending Account, or FSA. And we mean fast.
You have until midnight on Tuesday, Dec. 31, to spend money in an FSA or risk losing it.
SUGGESTED: How to turn unused gift cards into cash
You may want to make an appointment right away to see a health practioner, or buy health-related items before Jan. 1.
We're talking about pre-tax money you have deposited from your paycheck into your FSA, which can be used to pay for health-related expenses, such as medicines, doctor visits, and contact lenses.
Roughly half of FSA account holders forfeited money in 2022, by an average of $441, according to the Employee Benefit Research Institute.
SUGGESTED: Holiday return policy changes: Some stores shortening windows
It's not only money you can use to buy healthcare costs, such as medicines, sunscreen, and co-pays, but you can essentially get them for 20% to 40% off because they're pre-tax dollars.
Unlike Health Savings Accounts, FSA funds cannot be carried over to the next year.
FSA funds can now be used for a wide variety of health-related expenses, including medical treatments, insurance deductibles, co-pays, medicine, sunscreen, yoga classes, ear plugs, and fertility trackers. They can also be used for weight-loss plans or fitness classes with a letter of medical necessity from your doctor.
There are tools that can help you spend it by the deadline.
One is the FSA Store, an online marketplace of 2,500 FSA-eligible items.
Plus other retailers, including Amazon, Walmart, and Walgreens, offer online FSA stores, as well.
And the Instacart app and website now let shoppers use FSA to pay for eligible items from thousands of retailers that can then be delivered to you the same day.
While you need to make your FSA purchases before Jan. 1, some plans allow you to submit receipts until March or April of the following year, depending on the plan. Once you submit them, you'll be reimbursed for the cost.