It's almost the end of 2023. And, the end of a calendar year in the HR world means Flex Spending Accounts (FSAs) need to be used. FSAs are a valuable tool for managing healthcare expenses, allowing individuals to set aside pre-tax dollars for qualified medical expenses. However, it's crucial to understand that these funds have a use-it-or-lose-it policy. This means that any money left in your FSA at the end of the year generally doesn't roll over, so it's important to make the most of it before it expires. Let’s explore why it's crucial to utilize your FSA funds before the year ends and how it can benefit both your health and financial well-being.

Understand the "Use-It-or-Lose-It" Rule

One of the most significant aspects of FSAs is the "use-it-or-lose-it" rule. This policy dictates that any funds remaining in your FSA at the end of the plan year generally cannot be carried over into the next year. This means that any unspent money goes back to your employer, essentially leaving you empty-handed.

Avoid Losing Hard-Earned Money

Leaving money on the table is never a wise financial move. By failing to utilize your FSA funds before they expire, you're essentially missing out on money that you've worked hard to set aside. This is money that could have been used to cover essential medical expenses, including doctor visits, prescription medications, dental work, and even over-the-counter items like first aid supplies.

Be Sure to Plan for Upcoming Expenses

By proactively planning and using your FSA funds, you can strategically allocate them to cover upcoming medical expenses. Whether it is scheduling a check-up, purchasing prescription medications, or undergoing a necessary medical procedure, your FSA funds can help ease the financial burden.

Enhance Your Overall Health and Wellness

By using your FSA funds for eligible medical expenses, you're investing in your health and well-being. Regular check-ups, preventive care, and necessary treatments are all essential components of maintaining a healthy lifestyle. By utilizing your FSA, you're ensuring that you have the financial means to prioritize your health.

Explore Eligible Expenses

FSAs cover a wide range of qualified medical expenses, including but not limited to:

  • Doctor and specialist visits

  • Prescription medications

  • Dental and orthodontic expenses

  • Vision care, including glasses and contact lenses

  • Mental health services and counseling

  • Physical therapy and chiropractic care

  • Over-the-counter medications

  • Medical equipment and supplies

  • Sunscreen, online therapy, wearable emergency alert systems, massage tools, light therapy tools, body scanning scales,

Be sure to review your FSA plan documents or consult with your employer's benefits administrator to get a comprehensive list of eligible expenses or check out www.fsastore.com.

So, get spending! By maximizing your FSA funds before the end of the year, you're not only avoiding forfeiting your hard-earned money but also investing in your health and well-being. And, for 2024, start planning what you will need to spend on. Your future self will thank you for it.