Use it or Lose it! It's Flex Spending Time!

There's just over a month left to use the funds in your Flexible Spending Account. Don’t forget to use some of that flex money to give your eyes a little love. Hurry before it's gone for good.

What Is A Flexible Spending Account?

A Flexible Spending Account (FSA) is an employer-provided flex spending program that helps individuals use pre-tax dollars from their paycheck to fund qualified medical procedures. Each year, employees are able to deduct a percentage of their paycheck that they would like to set aside for eligible medical expenses. Nearly 85% of large companies and many smaller ones as well, offer these medical and health care spending accounts. They have increased in popularity in recent years, especially since they enable individuals to lower their taxable income by up to $5,000 dollars.

How Do Medical Flexible Spending Accounts Work?

Medical Flexible Spending Accounts allow employees to have up to $5,000 withheld tax-free that they can use toward various healthcare expenses. Typically, employees pay into the fund over the course of the year- but you do not need to wait until all of the money accrues. As soon as your FSA begins you can use all of the money you have elected to bank. Funds are either deducted from the account via a debit card, or the employee can submit receipts of eligible purchases, and the funds are credited against the balance in the account. The only real downside to Flexible Spending Accounts is that if you don’t use up all of the balance in your account by the end of the calendar year, then you lose them for good. But don’t worry; we list several ways you can use up your FSA funds before you loose them. The below vision-related products and services are a great way to get the most from your FSA dollars.

Eye Exams & Co-pays: You can also use your Flexible Spending Account dollars to offset deductibles and co-pays for eye exams, office visits, and medical procedures. It’s a great reason to come in for that visit you’ve been putting off.

Prescription Sunglasses: Since prescription sunglasses are considered medical devices, they qualify as an eligible Flex purchase. Take advantage and use your FSA to buy that pair of designer prescription sunglasses you’ve had your eye on.

Prescription Eyeglasses or Reading Glasses: Like prescription sunglasses, eye glasses are medical devices. So Flex funds can be spent on both prescription lenses and the frames to hold the lenses. If you’ve recently purchased a pair of “everyday” eyeglasses, you might use some of the funds in your Flexible Spending Account to add a second, “fun” pair of designer eye glasses to your fashion accessories.

Computer Glasses: Suffering from eye strain, headaches or blurry vision after a long day at the computer? Computer glasses might help. And, they qualify for Flex spending. Many people who don’t normally need eyeglasses find that a good pair of computer glasses can help them focus better after extended stints on the computer, as well as reduce eye fatigue. And computer glasses don’t have to be ugly – we can pair them up with any fashion or designer frame that you like.

LASIK Vision Correction Surgery: Do you dream about living life to the fullest without depending on corrective lenses? LASIK may be the solution you’ve been dreaming about- and using your FSA can save you up to 20%. Under IRS guidelines, laser vision procedures (including LASIK eye surgery) are an eligible FSA expense. Utilizing this tax-free Flexible Spending money can not only reimburse you for the cost of the procedure, but it can also reduce your out of pocket costs by hundreds of dollars since you set the money aside pre-tax.

As you can see, there are lots of ways to show your eyes love using your Flexible Spending Account Funds. We hope you find this information helpful if you find yourself with money left in your fund towards the end of the year and also when deciding about your participate with your company’s FSA program.

Please Note: This article is intended for education purposes only and does not constitute professional financial or tax advice. If you’re unsure about which services and products qualify for Flexible Spending Accounts, please contact your accountant, a tax attorney, HR professional or the U.S. Internal Revenue Service.