![]() Keeping a supply on hand helps to avoid an emergency trip to the store in the middle of your day or an important event. Another item you can save yourself a trip to the store for are menstrual and feminine care products.Whether it’s a cut on your hand from a rogue knife peeling a potato or a kid slipping on the icy front porch, having a fully stocked First Aid Kit may be a smart buy for many and one usually covered by FSA funds. If your vision hasn’t changed but your style has, you may be able to get a new pair of glasses or perhaps prescription sunglasses just in time to kick off the start of a new year.Be sure to check the date on your current bottle and stock up for that holiday getaway vacation. But using it past its expiration date can be risky. Depending on what part of the country you live in, a bottle of sunscreen may last years.Most over-the-counter (OTC) medications are covered by FSA funds and it doesn’t hurt to have a small supply on hand to get you through unexpected illnesses. ![]() Rather than running to the store - think pain relief medications-there are certain items that you may want to always have on hand.In addition to the commonly purchased FSA eligible items, here are some items that may surprisingly be covered by FSA funds. If the medicine cabinet and dental checkups are complete, there are other creative ways to spend FSA money on items that you’ll use year-round. Limited-Purpose Health FSA can be used for various dental and vision-related items like contact solutions, denture cleaners, alignment devices, even mileage from dental and vision visits.Health FSA can be used for qualified health care products and services like acupuncture, pain relievers, bandages, eye exams, x-rays, and yes, even your co-pays.Types of expenses that are FSA eligibleįSA funds can be used to purchase items or pay for qualified out-of-pocket medical expenses for you, your spouse, or your dependents. While FSAs help employees save money on qualified expenses, the money contributed to an FSA must be used by the end of the year or you risk forfeiting the funds. Employees can choose an amount, up to $2,750 for plan year 2021, to be taken out of each paycheck based on their estimation of annual out-of-pocket expenses. Why sign up for an FSA in the first place?įlexible Spending Accounts are pre-tax accounts set up by employers on behalf of their employees to help cover qualified medical expenses throughout the year. United States (U.S.) workers leave nearly $400 million in FSA funds unspent each year and unless your employer offers an extension to the December 31st deadline (for calendar year plans) there is no recovering that money. While this may be a time of back-to-back holidays, it’s also a great time to reevaluate your employer benefits and figure out how to spend your Flexible Spending Account (FSA) money before the end of the year. For more information about the BASE® LPFSA or the BASE® HSA call cheer is in the air and twinkling lights may be appearing in many towns. The Limited Purpose FSA allows for the employee to pay for the dental and vision expenses, while saving their HSA funds for future medical expenses, building HSA funds, or investment opportunities.īy using the LPFSA first, participants have the opportunity to build contribution amounts in their HSA while still receiving a pre-tax benefit for eligible dental and vision expenses. The employees can see an increase in take-home pay due to funds being transferred on a pre-tax basis, saving on Federal, State, Social Security, and Medicare. The LPFSA benefits are not limited to only the employer, but to the employees as well. It may seem that by limiting the reimbursements to only dental and vision care, that it isn’t much, but with the employee electing to make pre-tax contributions, it reduces the employer’s share of FICA and FUTA taxes and enhances the employer’s benefits package. The employer can find additional ways to maximize savings and tax benefits for the business and employees. With the LPFSA, the employer can take advantage of its benefits. The BASE® Limited Purpose Flexible Spending Account (LPFSA) is a special type of flexible spending account (FSA) that is available to employees, enrolled in a Health Savings Account (HSA), to put aside money, on a pre-tax basis, to pay for eligible dental and vision expenses. But just because the name starts with the word, “limited,” it doesn’t mean it is limited in the potential tax savings and benefits to both employer and employees. The Limited Purpose FSA works like a regular FSA but is limited to the number of eligible expenses it can be used for.
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