Many of us get preoccupied with the holidays, shopping for gifts for loved ones, and making lists for the next year. One important task often overlooked in this hectic time is to make sure you use your flexible spending account (FSA), funds before it’s too late.
You may be able to transfer $500 from your FSA funds into next year with some employers. These funds cannot be carried over to the next year by employers that do not allow it. Your employer will lose the funds otherwise. FSA holders are responsible for more than $400,000,000 in lost tax-free income each year.
It’s not too late for you to put together a checklist of health-related items to help keep your family healthy during the final weeks. These are five tips to help you maximize your benefits.
1. All physicians should be consulted for an annual check-up. You should also visit other specialists like an optometrist or dentist, dermatologist, or gynecologist along with your primary physician.
2. Eye care/medical aids are also important. To make the most of FSA funds, you might need to purchase additional glasses, contact lenses, or inserts for your orthotic shoes.
3. Low-cost items for health care are worth considering. Keep an eye out for low-cost items that can be used all year, including contact solution and first-aid kits.
4. Ask your employer about FSA options that are unique. Find out if your FSA plans include Lasik, massages, acupuncture, or other unusual procedures.
5. Submit receipts. Double-check receipts to ensure you have submitted all past receipts for eligible out of pocket health care purchases.
“It’s important to review your out-of-pocket expenses from the past year and consider any changes that may occur to gain a better idea of how much to contribute to an FSA in the coming year,”Matthew Owenby, senior vice-president and chief human resource officer at Aflac.
You can make sure that money is not left on the table by creating a list and then checking it twice.
