Make a Plan for Use-or-Lose Funds

Alicia Nelson-Bell, HCHC
Empowering Financial Wellness Program Coordinator

Flexible Spending Account 101. If you have an employer sponsored Flexible Spending Account (FSA) you may need to make a plan of how you would like to utilize any remaining funds you have in your account so you don’t lose them. You will want to first check with your employer to see if they have opted in to allowing some of your funds to roll over into the first couple of months of the coming years' plan. If they have, you may be able to roll over up to $500 of your funds and extend your usage deadline. However, if this is not an option, you have until the end of the plan year (often December) to use the funds YOU have contributed before you lose any that remain. 

What can you use FSA funds for? There are a variety of goods and services you are allowed to use FSA funds for including: copayments, deductibles, prescription medications, over-the-counter medications, some medical and dental expenses, and quite a few different medical supplies or equipment. On the FSA Store website you can find a couple hundred items that are eligible to purchase using FSA funds. 

If you have an FSA with funds remaining, take some time to ask questions about your potential to roll funds over and explore the possibilities for using your remaining FSA funds. Plan out how to make best use of your remaining funds before your use-or-lose deadline gets here so you aren’t throwing away your hard earned money.