Maximize Your FSA Savings: Avoid Losing Your Hard-Earned Money

There are easy ways to spend those hard-earned pre-tax funds you have sitting in your Flexible Spending Account (FSA) healthcare savings plan offered through your employer. The unfortunate truth is that with these types of accounts, it’s “use it or lose it”. Unlike a Healthcare Savings Account (HSA) in which the pre-tax funds can be saved and used anytime in your lifetime for healthcare costs, if you don’t use up the FSA funds by the deadline, the money goes back to your employer. That said, it’s important to make sure you spend every penny of these pre-tax funds FSA for maximum savings. Here are some tips on how to not lose your FSA money.

Surprisingly, many common household personal care and health items are eligible for FSA (or HSA for that matter) account spending. Sunscreen, bandages, first aid, alternative medicine procedures like acupuncture, prescription/reading glasses, vitamins, heating pads, humidifiers, motion sickness bands, medical devices, orthotics, family planning products, birth control, feminine care products, and even travel pillows are all FSA/HSA eligible expenditures.

Most major retailers have online stores where you can purchase FSA/HSA eligible items: CVS, Target, Walgreens, to name a few. There are also online-only shops, like the Amazon FSA-HSA Store and HSA Store, which carry FSA/HSA eligible products and accept FSA/HSA cards for payment, so there’s no guesswork.

So how can you make sure you don’t lose your FSA money? The truth is, you’ll need to keep an eye on your calendar and account balance. I suggest setting a calendar reminder a month before the funds expire, so you can be sure to make purchases or submit claims for healthcare spending refunds. Use it or lose it!