Final Days to Use Your FSA Money: Here’s What You Could Get

This story is part of 12 Days of Tips, helping you make the most of your tech, home and health during the holiday season.

Your flexible spending account (FSA) provides a delicate balance of risk and reward. On the positive side, you get tax-free contributions toward expected health costs like over-the-counter medicine, screening tests and medical equipment. On the negative side, you usually have to spend your money every year or you lose it. (Don’t let your company take your money.)

FSA funds can be used for medical treatments, insurance deductibles and copayments and for prescription medicine that isn’t covered by insurance, but a whole long list of items and health services can be FSA eligible, including several you may not have considered, like face masks, yoga classes or sunscreen. 

Read on to find all of the possible ways to spend your FSA money before the end of 2022. For more, read about the best life insurance companies or the best pet insurance.

What is a flexible spending account, or FSA?

Flexible spending accounts (also called flexible spending arrangements) are a type of “cafeteria plan” from employers that allow people to use tax-free contributions from their paychecks for specific expenses. There are several types of FSAs, but the most common are health FSAs, which participants can use to pay for medical and dental costs that aren’t covered by insurance.

With an FSA, you’ll decide how much you want to contribute at the beginning of the year, and your employer will deduct a portion of it from every paycheck.

The maximum amount an employee can contribute to an FSA is $2,850 for 2022 and $3,050 for 2023. Employers might provide additional funds to FSAs as a benefit, but those funds do not impact the employee contribution limit.

Traditionally, employees with FSAs will file claims with their employers to receive reimbursement for eligible expenses. Some companies now issue a debit card with FSAs so that plan participants can make purchases directly from their accounts.

Most FSAs follow a “use it or lose it” system where unused funds at the end of the year revert to your employer, with two possible exceptions. Changes to the laws on FSAs in 2021 allow companies the option of giving employees either up to a two-and-half-month grace period (that is, until March 15, 2023) to use FSA funds; or carrying over funds up to $610 into the following year. If you do carry over money from 2022 into 2023, that does not affect your yearly contribution limit of $3,050. 

Employers are not required to provide either FSA continuation option to their employees, however. Every company has its own FSA rules, so be sure to check with your FSA plan administrator or human resources department for the exact details of your plan.

What can I spend my FSA money on?

Along with medical treatment such as doctor and emergency room visits, insurance deductibles and copayments, and prescription medicine, there is a long list of approved products and services that are eligible for FSA coverage.

While some FSA items are automatically eligible for everyone, other products and services require a letter of medical necessity (LMN) from a licensed physician. The following list of FSA-eligible products is not completely exhaustive, but it covers all of the major categories of medical and dental care that can be paid for with FSA money:

Over-the-counter medicine: OTC medications were not FSA eligible until the passage of the Coronavirus Aid, Relief, and Economic Security Act in 2020. Now, cold, flu and allergy medications, pain relief like ibuprofen and acetaminophen, motion sickness pills, glucosamine sulfate for joint pain and other OTC medicine all qualify for FSA claims. First-aid kits and supplies like adhesive bandages and antibiotics are also eligible.

COVID-19: COVID-related products such as face masks, at-home tests and hand sanitizer qualify for FSA reimbursement.

Dental procedures and products: Your dentures, implants, bridges and sealants are all covered by FSA, as are dental reconstruction and wisdom teeth removal. FSA funds can usually cover orthodontia, including Invisalign. Veneers require an LMN from a dentist.

Vision: Not only can you use your FSA funds for prescription eyeglasses and prescription sunglasses, you can also use them for non-prescription reading glasses or blue-blocker glasses. Similarly, contact lenses and supplies, including cleaning solution and lens cases, are eligible for FSA coverage, as are cataract and laser eye surgery.

Hearing: Your FSA money can be used for hearing aids, as well as batteries and maintenance for those aids. Telephones for the hearing impaired are also covered, as are products like ear cleaners and wax removers.

Breathing: Respiratory products such as nasal spray, inhalers and vaporizers are eligible for FSA coverage. With an LMN from a doctor, air conditioning, air filters and air purifiers can all be eligible for reimbursement.

Sleep: Along with OTC sleep medications, your FSA money can also be used for CPAP machines for sleep apnea and mouth guards to prevent teeth grinding. Prescription sleep medicine is also included. Items such as pillows with lumbar support or melatonin can be covered with an LMN from a doctor.

Preventive screenings: Take care of yourself with tests to evaluate your health that can be paid for with FSA money. Eligible screenings include DNA testing, heart scans, cancer screening, diabetes screening, HPV and HIV screening, breast cancer mammography screening and CT scans, as well as any blood tests that aren’t covered by insurance.

Pregnancy and sexual health: Most pregnancy related items and services are eligible for FSA funding, including pregnancy tests, prenatal vitamins, infertility treatments, intrauterine insemination and in vitro fertilization (IVF), as well as costs related to egg donors, surrogates, and egg and embryo storage. Men can use FSA funds on vasectomy reversal and Viagra.

Babies: FSA funds can cover many newborn-related expenses, including breast pumps, lactation consultants, breastfeeding classes, breast milk storage bags, diaper rash ointment, children’s sunscreen and baby breathing monitors. Infant formula can qualify, but only with an LMN from a doctor.

Contraception: FSA funds can help prevent unwanted pregnancies as well. Birth control pills, tubal ligation, vasectomies and condoms are all eligible. Levonorgestrel-based “morning-after pills” like Plan B One-Step or Take Action are eligible for FSA funding, as are all legal abortion procedures, including RU 486 pills (Mifepristone).

Menstruation: Pads, tampons, period underwear, pain relievers and other menstrual supplies all qualify as FSA expenses.

Medical equipment: Most products for measuring health are eligible for FSA money. Examples are thermometers, blood pressure monitors, blood sugar test kits and pulse oximeters.

Batteries: Along with the medical equipment itself, if you use batteries to power medical devices, they are FSA eligible.

Mental health: You can use FSA money for mental health treatments and services, including therapy and counseling in person or online. Visits to psychologists or psychiatrists are eligible, as are psychiatric care and prescription medicine. Unfortunately, marriage and couples counseling are not eligible for FSA reimbursement.

Addiction: FSAs can cover smoking cessation treatments and products to help stop smoking, like nicotine gum or patches. They can also cover donations to Alcoholics Anonymous meetings and the cost of transportation to attend, as well as other substance abuse programs and treatment for gambling addiction. An LMN is required to cover the cost of staying at a halfway house.

Weight loss: Weight-loss programs are eligible for FSA coverage, as are gastric bypass or lap-band surgeries. Prescription drugs for weight loss can also be covered by FSA money.

Physical fitness: Most fitness expenses aren’t eligible for FSA coverage unless they are prescribed by a physician with an LMN. These expenses, if doctor recommended, can include personal trainers, gym memberships and yoga classes.

Athletic protection: If you’re looking to keep yourself safe and healthy during athletic activity, your FSA funds will cover many items, including athletic tape, braces and bandages, cups, face masks and mouth guards.

Muscle therapy: Most physical therapy is eligible for FSA funding, including massage devices at home. You can also use your FSA money for carpal tunnel supports, back braces or heating and cooling pads.

Foot care: Even though you can’t use FSA funds for athletic shoes (no matter how orthopedic) you can still use FSA money for healthy feet. Supports for high or low arches, foot care products and corn removers are some of the items eligible for FSA coverage.

Transportation: FSA money can be used to pay for travel expenses related to medical care or advice, including airplane tickets, gas for driving, mileage and maintenance costs, parking, bus or train fares and lodging.

Alternative medicine: A few nontraditional medical products and practices are eligible for FSA funding, including acupuncture, chiropractic services, homeopathy and holistic medicine.

Health-related home improvements: If you need to make changes to your living situation to account for an injury or medical situation, your FSA money should be eligible for most of it, including wheelchair ramps, grab bar installations, wider doorways, lowered kitchen cabinets or counters and home elevators, 

Mobility: For help getting around, FSA money can cover many products, including scooters, wheelchairs, crutches, canes and artificial limbs. Modifications to automobiles can also be eligible for FSA reimbursement with an LMN from a doctor.

Where can I buy products eligible for FSA spending?

You can purchase FSA-eligible products and services anywhere, as long as they qualify for reimbursement. Many major online retailers have created FSA-eligible stores that include all of the products that can be bought with FSA funds. 

Amazon, CVS, Target, Walgreens and Walmart all have their own FSA/HSA stores to make it easy to find qualifying medical and dental products.

Which expenses can’t be paid for with FSA money?

Despite the long list of potential uses for your FSA money, there are some medical and dental items that don’t qualify. Here is a list of products, services and expenses that are not eligible to be covered by FSAs:

• Adoption expenses
• Athletic shoes
• Baby bottles
• Bug repellant
• Cannabidiol (CBD) products
• Car seats
• Cotton swabs
• Dehumidifiers
• Dental floss
• Deodorants
• Hair regrowth or hair removal products (including electrolysis)
• Health or dental insurance premiums
• Lactaid or other lactose-intolerance medication
• Latex or nitrile gloves
• Liposuction
• Marriage counseling
• Mattresses
• Medical marijuana
• Paternity testing
• Protective goggles or safety glasses
• Shampoo, soap, shaving cream or skin moisturizer
• Smoke or carbon monoxide detectors
• Summer or athletic camps
• Tattoo removal
• Teeth whitening or bleaching
• Toothbrushes or toothpaste
• UV protective gear
• Veterinarian costs
• Weight-loss supplements

For more health-related reading, learn how colder weather in winter can impact your breathing.