October 8, 2007

Year-End FSA Thoughts

As the year comes to an end there are probably many things on your mind during the holiday season. One thing that you should not forget about is your flexible spending account. If you have money in your flexible spending account and you are wondering how to use these funds there are some choices that should be considered. Remember that money not used in your flexible spending account cannot be rolled over in to the next year if not used.

My wife frequently tells me my hearing needs to be checked. What better time than now. Spend some of the money in your flexible spending account to pay for a hearing examination. What about getting that laser eye surgery you have talked about for years. Your flexible spending account can be used to pay for laser eye surgery.

What about other procedures. Many health related procedures are covered under flexible spending accounts. Many over the counter health products are also covered. Be sure to do your homework and confirm that the procedure or product you are purchasing is covered.

Click on the link above for qualified medical expenses to get a list of qualified medical expenses. The money you have put aside in your flexible spending account has not been taxed and if used on qualified expenses will never be taxed. You immediately save significantly by putting money in and using the funds of your flexible spending account.

So even if you opted out of this year’s flexible spending account and have time to think about other year end issues, sign up during open enrollment for your company’s flexible spending account if you have known future medical expenses.

Filed under Flexible Spending Account, Health Savings Accounts, Health Insurance by Scott Cooper