Avoid These Mistakes When Spending Your FSA Money Before Year-End

Time is of the Essence: Utilize Your FSA Funds Wisely

If you still have money in a flexible spending account (FSA), the clock is ticking. Many enrolled during open enrollment last year to fund their FSAs with pre-tax dollars for eligible medical expenses, such as doctor visits, dental procedures, or prescription medications. However, if you don’t spend the remaining balance before the year ends, those funds could be lost.

What to Watch Out For

To avoid losing your money, consider these common mistakes:

1. Misunderstanding Your Timeframe

While the Dec. 31st deadline may seem immediate, your company’s policy could offer more time than you anticipate. Rachel Rouleau from FSAStore.com advises checking with your HR department or FSA administrator for clarification on when your funds expire. She states, ‘The most common plan year is January to December, but it could end on any month, depending on your employer’s specific plan.’ You might also have a grace period or the option to carry over some balance into the next year.

2. Ignoring Eligible Health Tech Purchases

As similar innovations unfold in the health tech sector, FSA funds can be used for devices that support health management. Check platforms like FSAStore.com or Amazon’s FSA Store for eligible items, including blood pressure monitors or digital scales. Nery Solano from TrueMed advises that certain devices may require a letter of medical necessity from your doctor.

3. Overlooking Over-the-Counter Medications and Menstrual Products

Thanks to the CARES Act, you can now buy over-the-counter medications and menstrual products with FSA funds. Rouleau adds, ‘Always keep your receipts for any purchases to ensure reimbursement, even if your plan doesn’t require it upfront.’ This precaution could save a hassle down the line.