We encourage all FSA users to take time now to check their deadline and their balance, map out their anticipated out-of-pocket costs for healthcare services for the year, and then visit FSA Store to make plans for using their funds in ways that fit their lifestyle and their health needs.
NEW YORK (PRWEB)
July 31, 2023
When you’re looking to save money, whether it’s for a family vacation, college expenses, or holiday shopping, it helps to plan ahead. Unfortunately, planning ahead for end-of-year healthcare expenses is not always top of mind for consumers and that’s why over a billion dollars in tax-free flexible spending account (FSA) funds are forfeited every year. Health-E Commerce, parent brand to FSAstore.com – the first and leading online marketplace dedicated exclusively to selling FSA-eligible products – is on a mission to help more than 35 million Americans who are enrolled in FSAs avoid losing their hard-earned healthcare dollars by sharing three things FSA users should do now to avoid losing funds to a missed deadline in December.
What is an FSA? An FSA is a tax-advantaged account that consumers can enroll in through their employer-sponsored benefits program. Employees and/or employers can contribute to the account through pre-tax payroll contributions. This reduces the employee’s taxable income and helps them pay for a wide range of expenses. FSA-eligible expenses are determined by the Internal Revenue Service.
Three things to do now to avoid losing money in December.
- Know your deadline. All FSAs have a deadline by which funds must be spent each year. The majority of employers that offer an FSA have a December 31 deadline, which means that employees who are enrolled in the FSA may need to spend all funds by December 31 with a few exceptions. Unused funds will be forfeited. This December deadline is often referred to as the “use-it-or-lose-it deadline.” Other deadlines to be aware of include:
- – Grace period deadline. Employers may opt to give employees a grace period of two-and-a-half months (for a December 31 deadline, until March 15) to spend down remaining FSA funds from the previous calendar year.
- – Carryover extension. Employers may allow employees to carryover up to $610 in FSA funds from 2023 to 2024.
- Check your FSA balance. According to a report from VISA, the average amount that consumers contributed to FSAs in 2022 was $1,221, and the average amount forfeited in December of 2021 was $393. Anyone who is unsure of how much they contributed and how much is remaining in their account should check their online FSA portal or contact their FSA administrator. FSA Store allows consumers to easily track their FSA spending and deadline and to receive automated alerts about upcoming deadlines so they don’t lose funds.
- Map your spending for the next five months. The list of eligible FSA expenses has expanded in recent years to include doctor visits, surgical procedures, a wide variety of clinical services, and an extensive list of everyday essentials. Some of the most popular ways to spend FSA dollars include:
- – Over-the-counter medications.
- – Sunscreen and moisturizers with SPF.
- – First-aid kits.
- – Allergy medications.
- – Acne treatments.
- – Menstrual care products.
- – Drug-free pain relief products.
- – High-tech items like hearing aids, acupuncture devices, migraine relief bands, health monitors, and deep tissue pain relief devices.
FSA Store offers a free, comprehensive eligibility list that makes it easy to map spending for the remainder of the year to ensure consumers don’t leave any tax-free funds on the table due to a missed deadline. This list can be used to personalize the FSA experience so FSA users can shop for everyday healthcare needs by product, category, lifestyle, or health condition.
“Preparation and knowledge are the keys to managing your health and your healthcare dollars, and at FSA Store, we support consumers with the educational resources and the interactive tools to do both,” said Rachel Rouleau, chief compliance officer for Health-E Commerce. “We encourage all FSA users to take time now to check their deadline and their balance, map out their anticipated out-of-pocket costs for healthcare services for the year, and then visit FSA Store to make plans for using their funds in ways that fit their lifestyle and their health needs.”
To learn more about FSA deadlines, visit the FSA Learning Center at FSAstore.com.
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Media contact: Barbara Tabor, [email protected], 651-230-9192
About Health-E Commerce
Health-E Commerce is the parent brand to FSA Store, HSA Store and WellDeservedHealth, a family of online marketplaces that serve the 70+ million consumers enrolled in pre-tax health and wellness accounts. The company also created Caring Mill, a popular private-label line of health products that benefits Children’s Health Fund and enables customers to make a donation with each purchase. Since 2010, the Health-E Commerce brands have led the direct-to-consumer e-commerce market for exclusively pre-tax health and wellness benefits. Health-E Commerce plays an essential role in expanding product eligibility for important new categories within the list of eligible medical expenses.
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