Use Your FSA
December 6, 2012
Use Your FSA
Do you have unused 2012 FSA or PCA funds?
Flexible spending accounts (FSAs) are a great way to put aside money for medical expenses throughout the year with the added benefit of saving on taxes. But if you overbudgeted and have leftover funds at the end of the year, you should know your funds do not roll over from one year to the next. Although it's a good idea to try to use your funds by Dec. 31, most FSA vendors allow a grace period for filing claims through the first couple of months of the next year.
Most standard FSAs will cover:
- Prescription co-pays
- Physician office co-pays
- Contact lens and supplies
- Glasses and prescription sunglasses
- Alternative therapies, such as acupuncture and chiropractors
- Infertility treatment
- Insulin supplies
- Laser eye surgery
- Medical monitoring and testing supplies, such as a glucose meter
- Pregnancy tests
- Nonprescription reading glasses
- Smoking cessation products
- Over-the-counter wound care supplies
- Most over-the-counter medications with a physician's letter or prescription
If you participate in a personal care account (PCA) medical plan, this year's PCA funds may not need to be used. Most PCA plans allow you to carry over a certain dollar amount into the next plan year. If you do wish to use your funds, most PCA plans will allow you to file claims through the first couple months of the next year, like an FSA. PCAs generally cover nearly all of the same expenses as an FSA. However, it's best to check with your plan for specific details about its policies and allowed expenses, as they can vary from one plan carrier to another.