What can you buy with a flexible spending account?
Flexible spending accounts (FSAs) are a popular employee benefit that allows individuals to set aside pre-tax dollars for healthcare expenses. These accounts offer significant tax advantages and can be used to cover a variety of healthcare-related costs. But what exactly can you buy with a flexible spending account? Let’s explore some of the most common uses for this valuable benefit.
Prescription medications and over-the-counter drugs
One of the most common uses for a flexible spending account is to pay for prescription medications. This includes both brand-name and generic drugs. Additionally, you can use your FSA to purchase over-the-counter medications, such as cough syrup, pain relievers, and allergy medications, as long as they are prescribed by a healthcare provider.
Medical supplies and equipment
FSAs can also be used to cover the cost of medical supplies and equipment. This includes items like crutches, bandages, thermometers, and even wheelchairs. If you have a chronic condition that requires specialized equipment or supplies, your FSA can help offset the costs.
Doctor visits and preventive care
Many people use their flexible spending accounts to cover the costs of doctor visits and preventive care. This includes routine check-ups, vaccinations, and screenings. By using your FSA for these services, you can save money on taxes and potentially reduce your out-of-pocket expenses.
Health insurance premiums
In some cases, you can use your flexible spending account to pay for health insurance premiums. This is especially beneficial if you have a high-deductible health plan (HDHP) and need to cover the cost of your insurance before your deductible is met. However, not all FSAs allow for this use, so it’s important to check with your employer or plan administrator.
Dependent care
Flexible spending accounts can also be used to cover dependent care expenses. This includes costs for child care, elder care, or care for a disabled dependent. By using your FSA for these expenses, you can save money on taxes and potentially reduce your taxable income.
Oral and vision care
Many FSAs can be used to cover the cost of dental and vision care. This includes routine cleanings, exams, glasses, contacts, and even Lasik surgery. By using your FSA for these services, you can save money on taxes and potentially reduce your out-of-pocket expenses.
Conclusion
Flexible spending accounts offer a valuable opportunity to save money on healthcare expenses. By understanding what you can buy with a flexible spending account, you can make the most of this tax-advantaged benefit. Whether you’re paying for prescription medications, medical supplies, or dependent care, your FSA can help you manage your healthcare costs more effectively. Always consult with your employer or plan administrator to ensure you’re using your FSA correctly and taking full advantage of its benefits.
