Use up that flexible spending

Spending your FSA dollars could help your financial and personal well-being

The end of the year is fast approaching and if you haven’t spent all the money in your flexible spending account, it may be time. Deadlines are nearing for some people to use the money or lose it altogether.

Check out a few tips on how to make the most of it:

1 Ask Inquire what your company’s policy is for using FSA funds. FSAs are a great way to set aside money tax free for medical expenses. They used to have a universal Dec. 31st deadline to use the money or lose it altogether, but the federal government changed the rules in 2013 and now employers have the option to allow employees to carry over up to $500 of unused funds into the following year.

However, not every employer takes advantage of that option. And those that do don’t always communicate it well, said Jody Dietel, chief compliance officer at Wageworks Inc. If your employer has not adopted the carry-over rule, you have until Dec. 31 to use the money. If they do offer the grace period, you have until mid-March.

2 Review Make sure you’ve made all the claims you can for expenses already incurred this year. Dietel suggests logging on to your health insurance carrier’s website to download your year-to-date claims. This will show you exactly what your out-of-pocket expenses have been and you can make sure you’ve submitted claims as needed.

3 Stock up You can use FSA funds for almost 50,000 over-the-counter items, such as Band-Aids, reading glasses, ice packs and contact lens solution, Dietel said. If in doubt, check out the FSAstore.com, which only sells items that are eligible for reimbursement. You can also use FSAs for prescriptions, so refill any medications you use on a regular basis. A few over-the-counter items are only approved for FSA reimbursement if they are required by prescription; many physicians are used to requests to write prescriptions for these items to address this need.

4 Consider kids Kids aren’t cheap but luckily many of the items to take care of them can be claimed for reimbursement. That includes prescription diaper cream, vaccinations and lice treatments.

If you are having a child soon, breast pumps, childbirth classes and in some cases doulas and birthing coach expenses are covered. Fertility treatments are also deductible. And for those trying to avoid kids, condoms and other contraceptives can be claimed as well.

5 Go online You can claim a surprising number of expenses, from copayments to smoking cessation aids. Travel expenses for getting access to health care is also reimbursable.

Check out the IRS website to find a complete list. Or WageWorks has a searchable list of eligible expenses at http://bit.ly/1RExH6E