The end of the year is just around the corner and for those who have FSA funds, your time to use them is running out.
A flexible Spending Account (FSA) is an employee-sponsored health benefit that is tax-advantaged.
Through the FSA funds, you contribute pre-tax dollars to pay for qualified medical expenses, like prescription eye-glasses, contacts, medications, acne treatment, hearing products, plus much more.
“It’s a great way to save on taxes and pay for qualified medical expenses with tax free dollars,” Charlene Rhinehart, a personal finance editor at GoodRx said.
When it comes to FSA funds, they are used on a use it, or lose it basis.
“You typically have a year to use the funds in your account and so if you don’t use those funds, the money goes back to your employer,” Rhinehart said.
However, most FSAs do have a carry over option of up to $610. It’s best to talk with your human resources about it.
FSAs can cover just yourself or your family members if needed. For 2024, the maximum FSA contribution is $3,200 per person. It’s important to budget what you think you will need before enrolling in the funds for your family.
“So you want to estimate the right amount of money to put into your account so you don’t lose those dollars,” Rhinehart said.
Not every company offers FSA funds however. Talk with your human resources department if you are interested in enrolling in an FSA fund.
Enrollment for FSA funds happens during the open enrollment season every year. And to learn more about GoodRx, click here.