Flexible Spending Deadlines Are Looming

If your FSA plan renews on a calendar year basis, it is time for you to make sure you are using up the very last dollar in your account so you don’t forfeit anything to your employer..  Many FSA plans renew January 1, and for many of these plans, you have to incur all expenses by December 31.Some FSA programs offer what is called the “FSA grace period” which is an extended period of coverage allowing you to incur expenses for 2.5 months after the close of your plan year..

If you do not have the FSA grace period, it has gotten a little harder to use up your remaining balance in 2011, as the federal health care reform has restricted your FSA dollars so that they can only be used to pay for over-the-counter medications if you have a prescription on file.  This only applies to medication, though, and doesn’t impact over-the-counter supplies such as band-aids, contact lens solution, etc.

So, if you have a few dollars left in your FSA, you can always buy the OTC supplies to exhaust your funds.

Here are a few other tips:

Claim mileage you drove to and from medical appointments in 2011.  The rate for services provided from January 1, 2011 through June 30, 2011 is $.19 per mile.  For services provided from July 1, 2011 through December 31, 2011, the reimbursement rate is $.23.5 per mile.  While this isn’t a lot of money, it starts to add up, and can help you get your last dollars out of your FSA.

Get a massage!  Most FSA plans require a letter of medical necessity for massages, but you can get this from your massage therapist.

Buy a second pair of glasses, or get prescription sunglasses.

Get an exam done to see if you are a candidate for laser eye surgery.

There is absolutely no reason to forfeit your FSA dollars.  Use the tips here to finish out your account, and go to What Is a Flexible Spending Account for more information.

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