How to Use Up Your FSA Balance Before the End of the Year
If you have a flexible spending account (FSA) for health care, you might be wondering how to use up your balance before the end of the year.
With the rest of the year remaining, plus a potential grace period, you have time to incur eligible expenses (check with your human resources department for specifics).
But before you get excited about using your funds for a home sauna or the latest nutritional supplement, you should know two things:
First, your particular plan might have a more restrictive list of eligible expenses than the IRS does.
And second, some companies claim that their products qualify for FSA reimbursement and they actually don’t.
But if you need ideas for how to use that money outside of doctor visits and prescriptions, here are 22 IRS-sanctioned options to consider. (Some may require a letter of medical necessity from your doctor.)
Vision care:
1. Contacts and solution.
2. Glasses.
3. Prescription sunglasses.
4. Laser eye surgery.
Skin health:
5. Sunscreen
6. Sun-protective clothing for a diagnosed medical condition.
7. Acne medicine.
8. Anti-itch cream.
Women’s health:
9. Pregnancy and ovulation tests.
10. Menstrual care products (e.g., pads, tampons, menstrual cups).
Respiratory health:
11. Home tests for COVID-19, flu and RSV.
12. Masks.
13. Hand sanitizer.
14. Sanitizing wipes.
15. Over-the-counter medications.
Mental health care:
16. Therapy for diagnosed conditions.
Fitness and diet:
17. Gym memberships and nutritional counseling for diagnosed conditions.
18. Heating pads and cold packs.
Home medical devices and tests:
19. Home sleep studies.
20. CPAP machines and supplies.
21. Blood sugar test kits, blood pressure monitors and pulse oximeters.
22. Diagnostic and screening blood tests.
Remember, an FSA should save you money by reducing taxes. Shop around for the best prices when using FSA funds, and don’t assume FSA-friendly vendors have the best deals.
