Use it before the end of the year or lose it: where you can spend funds from your FSA medical account

The end of the year is approaching, which may mean you have some extra money to spend. No, you're right. Many Americans have money in health flexible savings accounts (FSAs) that they need to use before the end of the year. Writes about this CNBC.

Photo: Shutterstock

FSA, which is usually offered as a benefit through an employer, gives you the ability to transfer money directly from your paycheck, tax-free, to an account that will be used to pay for medical expenses throughout the year. The maximum contribution in 2020 was $ 2750 per person.

Since these funds are tax-free, savings can indeed be increased. If you make $ 50 a year and the tax rate is 000%, TurboTax estimates that placing $ 30 in an FSA account will save you $ 2 in savings.

But unlike Health Savings Accounts (HSAs), which are commonly used when you have a high deductible health plan that allows consumers to roll over their savings year after year, FSAs operate on a use-or-lose basis. Some companies allow their employees to carry a set amount into the new year, but others require employees to spend their funds by a specific date.

Here are some products and services that you can spend your FSA balance on this year.

Acne treatment

If you use any over-the-counter acne creams, cleansers, or serums, you can probably use your FSA products to buy them. Look for brands like Clean and Clear, Neutrogena, and Proactiv, or products that contain common ingredients like salicylic acid, benzoyl peroxide, or azelaic acid.

Improving air quality

While these products are not intended to be used as medical devices, air conditioners, air purifiers, and air filters can be purchased with FSA funding if your healthcare provider specifies how they can be used to treat a medical condition.

On the subject: Wise financial decisions to make before the end of 2020

Alternative medicine treatments

Most people can use their FSA funds, for example, to attend acupuncture and chiropractor sessions.

DNA test kits

Want to learn about your heritage and how DNA can affect your health? Ancestry kits like 23andMe, which include health reports, are generally considered an FSA eligible purchase.

Hand sanitizer

In a year in which you've probably used more hand sanitizer than ever before, it's good to know that you can restock with FSA funds.

Childen's goods

Life can quickly get expensive after having a baby, so using FSA funds to cut expenses is a smart move. Items such as baby monitors, baby sunscreen, potty training diapers and thermometers can usually be reimbursed, as can items for new mothers such as postpartum bands, breast pumps and nursing supplies.

Dental procedures

Typically, you can use FSA funds to pay for dental services, including copayments or out-of-pocket costs associated with everything from basic cleaning to procedures such as root canal treatments, crowns, and even gum surgery. But conventional dental health products such as toothbrushes, toothpaste, and floss are not eligible for FSA purchases.

Eye care

Eyesight costs are usually covered by FSA plans, and you can usually use FSA funds to purchase contact lenses or eyeglasses, and lens accessories such as cleaning solution and cases. Even prescription sunglasses can be covered by the account funds.

Feminine hygiene products

This is a new (but long overdue) qualifying product category this year thanks to the CARES Act. You can now use FSA funds to purchase pads, tampons, liners, and even disposable panties. You can also purchase alternative products such as menstrual cups and Flex Disc.

"Morning Pill"

You can buy an OTC emergency contraceptive pill at most pharmacies and this is considered an FSA eligible purchase.

Nicotine patches and chewing gum

If you are trying to quit smoking, you can spend your FSA funds on nicotine gum, patches, lozenges, inhalers, and nasal sprays.

Over-the-counter medicines

Another benefit of the CARES Act: OTC drugs such as allergy medications, heartburn medications, and pain relievers are now eligible FSA purchases.

Products for pregnant women and family planning

Pregnancy tests, fertility treatments, monitors, prenatal vitamins, and breastfeeding supplies can generally be FSA coated, just like condoms. Maternity services such as parenting courses and certified doulas can also be paid for. You can use your FSA funds to purchase contraception, but keep in mind that you will need a valid prescription.

You may be interested in: top New York news, stories of our immigrants and helpful tips about life in the Big Apple - read it all on ForumDaily New York.

Shoe Liners

If you need extra support in the shoe, the insoles can be an FSA eligible purchase. Generally, orthopedic shoe inserts are suitable when used to treat, relieve, or prevent a disease or condition. According to the FSA Store, instep insoles are the most commonly bought.

Sunscreen

Depending on where you live, you may not need a bottle of sunscreen in December, but it might be worth stocking up for next summer and using your FSA. Any broad spectrum sunscreen with SPF 15 or higher will work, including moisturizers with this protection. Even if you don't need it right away, sunscreen lasts for three years.

Read also on ForumDaily:

Unbearable Medical Bills: What You Can Do To Get Help Paying

How to enter college in the USA without money

18 Ways to Cut US Medical Costs

How long do you need to keep tax documents: IRS recommendations

Do you want more important and interesting news about life in the USA and immigration to America? — support us donate! Also subscribe to our page Facebook. Select the “Priority in display” option and read us first. Also, don't forget to subscribe to our РєР ° РЅР ° Р »РІ Telegram  and Instagram- there is a lot of interesting things there. And join thousands of readers ForumDaily New York — there you will find a lot of interesting and positive information about life in the metropolis.