Dec. 08--The year is nearly up, which means that you've got very little time to empty out your Flexible Spending Account.
These accounts save you about 30 percent on out-of-pocket medical expenses by letting you use pre-tax dollars on eligible medical, pharmaceutical, dental and eye care costs -- but the challenge is determining which products are qualified before the money in your account expires.
There are about 35 million Americans covered by an FSA, and the average account holder will leave $170 in that account at the end of the plan year of calendar year, according to a 2014 VISA survey.
That's money you could be spending on everything from glasses to Band-Aids to sunscreen. Need more ways to spend that money that's sitting in your account? We grilled the experts to find some creative ways to spend it so that your money won't be wasted.
--See if your employer offers WageWorks Starting in 2013, employers may allow you to carry over up to $500 of FSA remaining, said Steve Wojcik, vice president of public policy for the National Business Group on Health, which represents employers on health care and health benefits issues. "That's one thing you should check first," Wojcik said.
--Take care of your eyes See the eye doctor for a regular check-up -- or even if you haven't been in years, Wojcik said. If you wear glasses or contacts, this would be the time to get a new pair of glasses, prescription sunglasses or contact lenses -- or to stock up on contact solution, all of which are covered.
--Look after your dependents Even if someone isn't on your employer plan, they can use your FSA expenses if you included them as a dependent, Wojcik said. So if they need to go to the doctor or have medical expenses, then you can write these off on your FSA.
--Get items that you will use throughout the year Thermometers, Band-Aids, shoe inserts and warm steam vaporizers are some of the most common things that people buy with their FSA at Fsastore.com, said Jeremy Miller, president and founder of Fsastore.com, which sells FSA-eligible products. Some of the more lesser known -- but still eligible -- expenses include hot or cold therapy eye masks, prenatal vitamins and sunscreen lip balm (but the primary purpose must be sun protection with an SPF of 15-plus), Miller said.
--Calculate travel miles The mileage to and from your medical treatments can be used toward your FSA, said Kay Bell, Austin-based contributor tax editor with Bankrate.com, a personal finance Web site. You can write off 23 cents per mile for the entire year for round-trip doctor visits, emergency room trips and even the rides to the pharmacy to pick up your prescriptions, Bell said. "It can all add up quickly," she said.
--Treat yourself Use your money to pay for acupuncture or for a chiropractor, Bell said. "It's not quite the same as a massage, but when you're dragging the Christmas tree in, and you pull something, it'll help."
--Ask for help If you're still stumped about what you can or can't use toward your FSA, then ask your benefits office via your employer, Bell said. They should be following the IRS medical deductions list, which they will hopefully be able to explain in detail.
--Determine how much you need for next year It's impossible to predict a medical emergency, but you can determine approximately how much you'll need in terms of basic medical costs by calculating your doctors visits, prescriptions and other (contributions to the FSA are limited to $2,550, and some employers set further limits). Use this calculator to figure out how much to contribute next time: Fsastore.com/services/FSAcalculator.aspx.
Braff is a freelance writer.
