Perhaps the most stressful part of a flexible spending account is the impending deadline by which you must spend your money. In most cases, your FSA funds must be used before December 31st. What happens to unused flex funds, and how can you use up your FSA money? Stick with us to find out.
What happens to unused FSA money?
Your employer keeps unused flex funds to pour back into the FSA program in several different ways. For instance, there are financial risks your employer takes when you open an FSA, and leftover funds can be used to cover the cost of any losses. Since you have access to the full amount of money before you even begin contributing, these losses can occur if you leave your job before fully funding your account.
Employers can also opt to either carry over $500 of your unused funds, or offer a grace period until March 15th of the next year. It's important to note that neither of these options are required.
Finally, in rare cases, employers can combine everyone's leftover flex funds and divide them equally among the employees.
How to spend extra FSA money
Before your money is going, going, gone; get acquainted with a list of eligible expenses. You might be surprised by all the things that fall under the umbrella of medical spending. There are even online stores that only sell FSA-eligible items!
If you've got extra flex funds to spend, check out Last Minute Ideas for Your Flex Spending Dollars. From prescription sunglasses to food for your service animal, there are tons of ideas you could be missing out on! And don't forget to check in with your family. Your FSA funds can be spent on your spouse, children, and any dependent you claim on your taxes.
You would never let the money in your wallet go to waste! Spend smart and use it or lose it.
Prescription glasses at SportRx
You can use those extra flex dollars to buy prescription eyewear from SportRx! When you shop with us, you’ll find video guides and tooltips throughout the build process as you customize the perfect pair. An answer to all your questions is at your fingertips, and if you want to chat with an expert, Contact Us. We’ll put you in touch with one of our friendly in-house opticians who can help you build your prescription glasses.
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Disclaimer: This content is provided solely for informational purposes. It is not intended as and does not constitute legal advice. The information contained herein should not be relied upon or used as a substitute for consultation with legal, accounting, tax and/or other professional advisers.
