If you’re looking to save money for your medical expenses, you may consider contributing to an FSA (Flexible Spending Account, Section 125 Cafeteria Plan). Using an FSA gives you the opportunity to use pre-tax money on a number of expenses that your medical, dental or vision insurance doesn’t cover – including co-pays and co-insurance, as well as certain health-care needs like feminine hygiene products, contacts, glasses, over the counter drugs and much more.
By contributing to an FSA, you also reduce your taxable income. There are rules to using an FSA, like individuals must use the money they place in the account within a year or risk losing it – with the rule that you may carry over $570. The maximum amount you can contribute does not change the next year if you choose to carryover money from the previous year.
An individual may contribute $2,750 per year into their FSA. If you’re married and your spouse has an FSA through their employer, they can also contribute $2,750.
Examples of allowable expenses you can use your FSA dollars on:
- Contact Lenses
- Flu Shots
- Hearing Aids
- Feminine Hygiene Products
- Laser eye surgery
There are 100’s of expenses that are FSA reimbursable. If you have a question on if a specific item is reimbursable, please contact our Health Claims team to ask: 800-747-4370.