You may have heard of something your employer offers known as a flexible spending account, also known as a FSA. These savings accounts are ones that your employer uses to deposit money into directly out of your paycheck throughout the working year. When the time comes, you can use the funds in your FSA to pay for copays, prescription drugs, glasses, and much more. The reason people make use of these accounts is because the money put into and taken out of the FSA is untaxed–you can get an eye exam from your Miami optometrist and a pair of glasses without having to pay taxes on either. If your employer does not offer vision coverage in any of their health care plans, then you need to be sure and ask them about a FSA account.
Important Things to Know About Your FSA
Before you go ahead and sign up for a FSA with your employer, you need to find out some important information first. There are also some things you should know regarding your FSA account and how it works.
- The funds in your FSA will expire at the end of the working year. Any money that is unused towards medical expenses will not be usable after January 1st of next year.
- Before signing up for a FSA with your employer, you should ask if they offer the $500 rollover or the 2.5 month grace period. While it’s not required, your employer can offer one of two options: to allow $500 to roll over after January 1st, or to allow you an extra 2.5 months into the new year to use your FSA funds.
- Using a FSA to pay for vision care is much cheaper than paying for eye exams and glasses out of pocket.
- You can begin using the money in your FSA for medical expenses as soon as it is deposited, you don’t have to wait until the end of the year. The only requirement is that the funds have to be used on healthcare-related costs, such as a visit with your eye doctor in Miami Beach.
How to Sign Up for a FSA ASAP
If you are liking the idea of opening a FSA that you can use for medical expenses without having to pay taxes on the money, then you need to speak with your employer. They will likely have someone on their team that can give you all the information you want to know about FSAs and how they work, and also to help you sign up for one. Don’t get discouraged if you notice that your employer does not offer any type of healthcare coverage for vision–there’s a good chance they offer FSAs if they do not. In many people’s eyes, using a FSA as opposed to having standard vision coverage is much better anyway.