WASHINGTON (11/24/15)-- If you’re looking to use up flexible spending account (FSA) funds, now is a good time to make some doctor’s appointments and stock up on eligible items (Kiplinger Nov. 18).
An FSA is an employer-sponsored plan that sets aside pretax dollars from your paycheck into a special savings account. FSA contributions are deducted in equal increments throughout the year, and can be allocated toward medical, pharmacy, dental or dependent care costs.
You can claim health-care FSA funds for qualifying out-of-pocket medical and dental expenses, such as co-pays, deductibles, eyeglasses, braces and Lasik surgery.
You can put up to $2,550 in an FSA each year. You generally have to use up that money within that calendar year. Some employers offer additional options, but cannot offer both:
Maximize your FSA benefits:
For related information, read “Interest Deferred: Beware Zero-Percent Medical Credit Cards” in the Home & Family Finance Resource Center.