Each year, Americans forfeit an estimated $400 million in unspent flexible spending account (FSA) dollars. But they don’t have to. If you have an FSA, the money in it is yours, but the clock is likely ticking on spending it.
With 2019 coming to a close, you may be considering how to best spend any money remaining in your healthcare FSA so that you don’t lose it. Many people now use these accounts to complement their traditional healthcare plan, using them to set aside pre-tax dollars for medical and dental expenses expected in the short term.
Note that while health savings accounts (HSAs) are similar to FSAs, HSA money does roll over into the next year, so there’s no need to be in a hurry to spend it. FSAs, on the other hand, have become known as “use-it-or-lose-it” accounts.
For 2019, the maximum amount you could save into an FSA was $2,700. While almost half of all employers now allow employees to carry over $500 of an FSA balance into the next year, not all do. Still some other employers allow a grace period until March 15 to use FSA money. By law, employers may offer either a $500 rollover or a grace period but not both. If you’re not sure what your copmany’s policy is on this, now is a great time to ask.
If your employer doesn’t have a carryover on FSA dollars, it’s important for you to identify how you will spend your FSA money before December 31st. The IRS maintains a list of eligible medical expenses and health items (find it here), including things like contact lenses, sunscreen and first-aid supplies. The good news is that the SoClean is among these FSA & HSA-eligible items; so if you’ve been waiting to purchase the machine for yourself or a loved one, the time may be now.
Before you kiss your FSA balance away, consider spending it on a SoClean machine, which can be used to quickly and easily clean your sleep equipment.