There are many options beyond seeing your doctor and taking over-the-counter medications.
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While it’s nice to be healthier than you expected this year, there may be a small downside to having a lot of money left in your Flexible Spending Account (FSA). Unlike Health Savings Accounts (HSA), FSA funds generally do not roll over to the next year. If you don’t spend the money by the end of the year, it can be confiscated.
Luckily, you still have a few weeks left to use up your remaining FSA funds. You can use it to pay for doctor’s visits, medical equipment such as wheelchairs, and the purchase of over-the-counter medicines. The following seven items may also qualify for FSA if they first meet certain criteria.
1. Treatment
Talk therapy can be an FSA-eligible expense when used to treat a diagnosed mental illness. For example, if you’ve been diagnosed with an anxiety disorder and are seeking therapy to treat it, you can use FSA funds to cover the costs associated with therapy sessions.
However, services such as couples and family counseling are not eligible for FSAs. While this may improve the quality of your life and home, it is not a treatment for a specific medical condition and will need to be paid for in other ways.
2. Smoking-free products
If you want to quit smoking or vaping, the products you use for that purpose, such as nicotine patches and gum, are eligible for FSA. Be sure to keep your receipts to prove you spent your FSA funds on approved items.
3. Weight loss program
Weight loss programs aimed at treating medical conditions such as obesity and high blood pressure may be eligible for an FSA. A formal diagnosis from a health care provider is required before spending FSA funds on these programs.
4. Gym membership
Similar to a weight loss program, you may qualify for a gym membership if your sole purpose is to treat an illness or rehabilitate an injury. If you just want to go to the gym to improve your health and well-being, that’s great, but you’ll have to pay for it yourself.
5. Certain modifications to homes and vehicles
Although it may seem unusual to use FSA funds to make home improvements, it is allowed if the changes are related to a covered medical condition. For example, if you recently started using a wheelchair, you can pay to enlarge your doorway, add a ramp to your home, or modify your vehicle to accommodate your wheelchair.
6. Guide dogs and service animals
If you have a guide dog or service animal, you can use FSA funds to pay for the cost of purchasing, training, and maintaining your animal. This includes food, grooming, and vet costs. However, this does not apply to general household pets.
7. Medical travel expenses
In some cases, you may have to travel far from home to receive medical care. In these cases, transportation, meals, and lodging expenses may be eligible for FSA. However, the main purpose of the trip should be your medical care.
What if I can’t use all my FSA funds on time?
You typically have until December 31st to use your FSA money. Your FSA money will then be confiscated. However, some employers offer one of two strategies to help employees keep excess funds. You can either give yourself a 2.5 month grace period to use up your remaining funds, or you can roll over the $660 until 2026. You don’t have both options.
If you have any questions about your company’s policies, please consult your company’s human resources department. If there’s no grace period or rollover option, you’ll need to make a plan to spend your remaining FSA funds in the coming weeks.
If you’re planning an upcoming doctor’s appointment, keep in mind that you can also use your FSA funds to cover health insurance deductibles and copays. However, these funds typically cannot be used to pay monthly premiums.
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