Lesser-Known Ways to Spend Your Health FSA Funds by March 15
If your employer plan still allows a grace period for 2014 spending, you can use the money on chiropractor visits, knee braces, acne medication or other health costs.
Do I need to spend the money in my flexible-spending account by March 15? And I know I can use the money for my deductible, but what else can I use it for?
Many employers changed their flexible-spending account rules to let you carry over $500 from one year to the next rather than giving you until March 15 to use all of the money in the account from the previous year. But some employers still offer the March 15 grace period. (Employers can't offer both the $500 carryover and the March 15 grace period.) In that case, you don't have much time to spend down the money remaining in your account from 2014 before it disappears.
You can use FSA money to pay for your deductibles, co-payments and other out-of-pocket medical expenses. You can also use it for medical expenses that may not be covered by your insurance, such as vision and dental care or visits to a chiropractor. You could spend down the money in your account by buying glasses or prescription sunglasses, or by stocking up on contact lenses and lens solution. You can also use the money for any portion of the cost of prescription drugs that isn't covered by insurance.
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.
You can even use the money for some expenses that don't require a doctor's prescription, such as knee and ankle braces, thermometers, first-aid kits, vaporizers, bandages, breast pumps, blood pressure monitors, hearing aid batteries, heating pads, certain hot and cold packs, prenatal vitamins and some sunscreens, says Jeremy Miller, president of FSAStore.com, which sells FSA-eligible products.
If you have a doctor's prescription, you can use FSA money for acne treatments, allergy medicine, nicotine gum and patches, pain relievers, cold medicine and several other expenses, Miller says. See Eligible OTC Expenses for lists of products that do and do not require a doctor's prescription to be eligible for FSA payouts.
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
As the "Ask Kim" columnist for Kiplinger's Personal Finance, Lankford receives hundreds of personal finance questions from readers every month. She is the author of Rescue Your Financial Life (McGraw-Hill, 2003), The Insurance Maze: How You Can Save Money on Insurance -- and Still Get the Coverage You Need (Kaplan, 2006), Kiplinger's Ask Kim for Money Smart Solutions (Kaplan, 2007) and The Kiplinger/BBB Personal Finance Guide for Military Families. She is frequently featured as a financial expert on television and radio, including NBC's Today Show, CNN, CNBC and National Public Radio.
-
Take Charge of Retirement Spending With This Simple Strategy
To make sure you're in control of retirement spending, rather than the other way around, allocate funds to just three purposes: income, protection and legacy.
By Mark Gelbman, CFP® Published
-
Here's How To Get Organized And Work For Yourself
Whether you’re looking for a side gig or planning to start your own business, it has never been easier to strike out on your own. Here is our guide to navigating working for yourself.
By Laura Petrecca Published
-
Credit Report Error? They All Matter
credit & debt Don't dismiss a minor error. It could be the sign of something more serious.
By Kimberly Lankford Published
-
Insurance for a Learning Driver
insurance Adding a teen driver to your plan will raise premiums, but there are things you can do to help reduce them.
By Kimberly Lankford Published
-
529 Plans Aren’t Just for Kids
529 Plans You don’t have to be college-age to use the money tax-free, but there are stipulations.
By Kimberly Lankford Published
-
When to Transfer Ownership of a Custodial Account
savings Before your child turns 18, you should check with your broker about the account's age of majority and termination.
By Kimberly Lankford Published
-
Borrowers Get More Time to Repay 401(k) Loans
retirement If you leave your job while you have an outstanding 401(k) loan, Uncle Sam now gives you extra time to repay it -- thanks to the new tax law.
By Kimberly Lankford Published
-
When It Pays to Buy Travel Insurance
Travel Investing in travel insurance can help recover some costs when your vacation gets ruined by a natural disaster, medical emergency or other catastrophe.
By Kimberly Lankford Published
-
What Travel Insurance Covers When Planes Are Grounded
Travel Your travel insurance might help with some costs if your trip was delayed because of the recent grounding of Boeing 737 Max planes.
By Kimberly Lankford Published
-
Ways to Spend Your Flexible Spending Account Money by March 15 Deadline
spending Many workers will be hitting the drugstore in the next few days to use up leftover flexible spending account money from 2018 so they don’t lose it.
By Kimberly Lankford Published