Established by some employers and typically funded via a pre-tax payroll deduction and in some cases, employers will also contribute.
They can be used in conjunction with any type of health insurance. FSAs can be used to cover deductibles, copays, co-insurance and qualified medical expenses like eye exams, prescription eyeglasses and contact lenses.
FSAs are “Use it or Lose it”money – meaning if the monies are not used by the end of the year (or by March 15th of the following year if the employer offers a grace period) they are forfeited.
There are provisions by which an employer can allow enrollees to carry over up to $500 to the next year. Check with your employer if:
- They allowed for a carryover
- They allowed for a full value carryover until March 15
- Or, did they limit the amount carried over (up to $500)