Updated for 2022. Here’s a year-end reminder to get back all the money sent into Healthcare Flexible Spending Accounts (HC FSA) due to their “use it or lose it” structure (see possible extensions below). The maximum salary deduction limit is $2,850 for 2022. You choose your deduction amount during Open Enrollment season, but it can also be adjusted during “qualifying life events” like the birth of a child, marriage, or divorce.
Quick ideas. If you didn’t exhaust your funds with insurance copays or deductibles, here are eligible items that you can still buy over-the-counter without a prescription. Just order things online and then submit the receipt. Amazon even has a special FSA-eligible page that accept FSA/HSA debit cards, complete with an “under $25” and “little-known eligible items” section. Use this time to stock your hurricane/earthquake/snowstorm emergency kits.
(You may need to view this page on the website to see all the Amazon links.)
- Eye care including reading glasses, prescription glasses, prescription sunglasses, contact lenses, solution, and drops. Ex. Bausch + Lomb ReNu Lens Solution
- First aid supplies (bandages, gauze, tape) for emergency kits. Ex. Band-Aid Brand Flexible Fabric Adhesive Bandages
- Wheelchairs, walkers, & canes. Ex. Medline Lightweight Transport Adult Folding Wheelchair
- Family planning products (condoms, birth control, pregnancy tests). Ex. SKYN Elite Non-Latex Lubricated Condoms, 36 Count
- Home testing aids (blood pressure, diabetes, thermometers). Ex. Omron Silver Blood Pressure Monitor
- Sunscreen and sunblock (SPF 15+ broad spectrum). Ex. Sun Bum Original Moisturizing Sunscreen Lotion and Baby Bum Mineral SPF 50 Sunscreen Face Stick (personal favorite for kids)
The 2020 CARES Act added the following categories for 2021 and beyond:
- Over-the-counter drugs like pain, cold/flu, and allergy meds. Ex. Vicks DayQuil and NyQuil Severe, Cough, Cold, Flu, Sore Throat
- Personal protective equipment including hand sanitizer, masks, and disinfecting wipes. Ex. PURELL Advanced Hand Sanitizer Variety Pack
- Menstrual care products such as tampons, cups, liners, and pads. Ex. DivaCup – BPA-Free Reusable Menstrual Cup
When getting a receipt, make sure it clearly includes the following:
- Date of service or purchase
- Name or description of the item
- Amount of purchase
Deadline extensions. Employers have the option of adding one of the following:
- Some plans allow a grace period until March 15th of the following year as opposed to a December 31st deadline to use your funds, but it may only apply to claims and not late purchases. Check with your employer on if they opted-in to these extensions.
- Some plans allow participants to carry over up to $500 in unused FSA funds into next year. Check with your employer.
Big, exhaustive lists. Some of these are searchable by keyword as well.
But remember, your FSA administrator has the final say as to the exact guidelines for reimbursement according to your plan. I learned this the hard way when our FSA administrator switched one year from in-house to Conexis (now since acquired by WageWorks). Wow, Conexis was a pain. I had to submit some claims three times before finally getting approved. If you count the time wasted, I probably lost money by participating in the FSA at all. The skeptic in me suspects that this bureaucratic nightmare is part of their business model. (Remember mail-in rebates?) Guess who gets to keep unreimbursed FSA funds? The employer, which can then use the money to pay for… the FSA administrator.
Got a Health Savings Account (HSA) and think you are ineligible for an FSA? Look for a “limited-purpose FSA” option that is restricted to dental and vision care services. These have the same max annual salary deduction.
Also see: The Best Health Savings Accounts (HSA) Providers: Fidelity and Lively/Schwab