The deadline for establishing a flexible spending account is approaching

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The deadline for establishing a flexible spending account is approaching

FSA contributions must be made by December 31; however, some companies let you roll over a portion of the unused funds.

Flexible spending accounts (also known as FSAs or flex accounts), which are set up through your employer, enable staff to deposit pre-tax money into an account with a linked debit card that can be used on approved healthcare goods and services.

Flexible spending account funds must be used by December 31 of each year or they expire; however, some employers may permit you to roll over a portion of unused funds up to a maximum of $570 to the following year.

According to the Employee Benefit Research Institute, nearly half of employers allow employees to roll over a set amount of money to the following year, and about one-third of employers give employees a two-and-a-half-month grace period to use funds in flexible spending accounts.

What can you buy with the funds in your flexible spending account?

Commonly used products like Tylenol, Motrin, cough and cold medicine, bandages, vitamins, sunscreen, heating pads, thermometers, antacids, and other over-the-counter medications are among the eligible items that can be bought with FSA funds.

Although many over-the-counter products are acceptable, depending on your particular plan, they might need a prescription.

A flexible spending account can also be used to pay for doctor’s appointments and prescription co-payments.

Visit FSAstore.com for a list of items that are FSA-eligible; you can also ask your employer and/or your insurance provider for a list of items as some items depend on your employer’s insurance plan.

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