Users of flexible spending accounts face a dilemma each year. FSAs let you spend tax-free dollars on eligible dependent-care expenses or medical and dental charges that aren’t covered by insurance. But you must use the funds by year-end or forfeit the money. Many employers allow a grace period up to March 15; others let you roll over up to $500 into the next plan year.
You can use money in your medical spending account for acupuncture, for example, or for massage to treat a medical condition, with a letter from your doc. Or you could use funds to pay health-club dues or for swim or dance lessons to treat a medical condition, with a letter. Consider nightguards (to stop teeth grinding) and sunscreen (SPF 15 or greater). Use your FSA to pay medical-records charges, or to get reimbursed for mileage to or from appointments.
For busy parents, dependent-care plans will cover kids’ rides to select daily activities, such as summer camp, from a service such as HopSkipDrive, which qualifies as a care provider. It currently operates in southern and central California, but it is expanding. And don’t forget that dependent-care plans can cover elder-care expenses, too.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
-
Why Birkenstock Is Still a Buy After EarningsBirkenstock shares are soaring Wednesday after the sandal maker beat expectations for its fiscal fourth quarter. Here's what Wall Street has to say.
-
Will Virginia End Its Tax on Tips?State Tax No tax on tips was a popular refrain during the presidential campaign. Now, Virginia’s governor has a similar idea.
-
Five Ways to Save on Vacation Rental PropertiesTravel Use these strategies to pay less for an apartment, condo or house when you travel.
-
How to Avoid Annoying Hotel Fees: Per Person, Parking and MoreTravel Here's how to avoid extra charges and make sure you don't get stuck paying for amenities that you don't use.
-
Your Guide to Open Enrollment 2023Employee Benefits Health care costs continue to climb, but subsidies will make some plans more affordable.
-
How to Appeal an Unexpected Medical Billhealth insurance You may receive a bill because your insurance company denied a claim—but that doesn’t mean you have to pay it.
-
Amazon Prime Fees Are Rising. Here’s How to Cancel Your Amazon Prime MembershipAmazon Prime Amazon Prime will soon cost $139 a year, $180 for those who pay monthly. If you’re a subscriber, maybe it’s time to rethink your relationship. Here’s a step-by-step guide to canceling Prime.
-
Make the Most of the New WorkplaceEmployee Benefits In the wake of the pandemic, employers are willing to be more flexible and inclusive.
-
Welcome to the Post-Pandemic Workplacework life balance There are five generations in the workforce for the first time. Here's how employers are trying to please everyone.
-
Workers: Expect Higher Salaries and More Perks in 2022Employee Benefits The pandemic economy, the “Great Resignation” and inflation are motivating companies to raise wages and find ways to increase employee satisfaction.
