SALT LAKE CITY — If you contribute to a health care flexible spending account, you could be at risk of losing hundreds or even thousands of dollars if you don't act soon.
Most FSA plans operate under a "use it or lose it" policy, meaning any money you've contributed throughout the year but haven't spent will disappear after the Dec. 31 deadline. These accounts allow you to set aside pre-tax dollars for qualifying medical expenses, but the clock is ticking to use those funds.
Experian Financial suggests talking with your human resource manager or plan manager to find out your current balance and whether your plan offers a grace period beyond the December deadline.
What FSA funds can cover
Your FSA dollars can be used for a wide variety of items, including over-the-counter medications like pain relief, cough and cold medicine, allergy medicine, antacids, and eye drops. The funds also cover first aid supplies.
FSA money can also pay for certain medical equipment and at-home tests, including blood pressure monitors, COVID tests, and diabetic supplies.
The U.S. Office of Personnel Management maintains a website listing more than 300 items that are covered and not covered by FSA plans. If you're unsure whether something qualifies, check with your pharmacist.
Getting the most from your money
To maximize your FSA benefits, make sure you're following the specific tax laws regarding these accounts. Consider consulting with a tax attorney or accountant for guidance.
Don't let your hard-earned money go to waste – take action now to use your FSA funds before the deadline passes.
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