The Health Care Flexible Savings Account (FSA) can be a great idea since it allows you to use pre-tax dollars to pay for any medical expenses not covered by your health insurance. But the FSA operates under a use-it-or-lose-it principle, so make sure you clean out your account by the end of the deadline or risk forfeiting the balance.
- Check to see if your employer’s plan operates under the old December, 31, 2009 deadline or the extended March 15, 2010 deadline.
- Depending on the deadline, make a list of health care items you need to purchase or medical procedures you need to schedule before the deadline. Start with any routine physical, dental, or eye exams since the FSA covers deductibles and copayments. Then move on to any health care items, such as stocking up on contacts and birth control pills, cough and cold medicines, allergy medicines, and first aid products. Pull up a list of eligible purchases from your plan’s website. And you might be surprised by how many run-of-the-mill, over-the-counter drugs from your local pharmacy make it onto the list.
- If you realize you might be over-funding your FSA, contact HR immediately to see if you can make any more changes. Most plans do not allow changes after Open Enrollment ends, but Open Enrollment periods vary from place to place and many have not closed yet.
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