Key Takeaways
- Flexible Spending Accounts (FSAs) allow you to save pretax money to use for qualified medical expenses not covered by your health insurance.
- You must use the funds by the end of the year, otherwise you’ll lose them.
- Some employers allow you until March 15th to spend your FSA funds.
If you’ve ever been responsible for a budget within a company or for the military, you may have been told to use up funds before the end of the fiscal year, otherwise your department loses those funds. In these situations, the pressure is on to purchase all the goods and services you think your group may need before the deadline hits.
This brings to mind Flexible Spending Accounts (FSAs), also known as Flexible Savings Accounts or Flexible Spending Arrangements. FSAs are accounts that allow employees to contribute a portion of their pretax earnings to pay for qualified medical and dental expenses that are not covered by health insurance.
There is a limit to the amount you may contribute; for 2020, the limit is $2,750 per employee. You must also use your FSA funds by December 31st of each year, otherwise you lose them. However, some employers will extend that deadline to March 15th.
If you’ve got FSA funds from last year that you need to spend by March 15th, a good resource is fsastore.com. On this site, you’ll not only find helpful information on FSAs, you can shop for items to restock your medicine cabinets, first-aid kits, and more.
So if you have an FSA, make sure you know what your deadline is to use your funds, and keep tabs on what’s in your account so you don’t lose that money. Until next time, enjoy.
