June 30 is a common flexible spending account (FSA) deadline, including for many government employees; FSA Store offer tips to help them avoid losing unused funds
DALLAS, June 25, 2024 /PRNewswire-PRWeb/ -- Millions of Americans are employed by federal, state, and city governments and rely on them for their health benefits. In fact, the federal government alone employs more than 2 million people. A common benefit across employer-sponsored health plans, including government plans, is the flexible spending account (FSA). Today, Health-E Commerce®, parent brand to FSA Store® – the first and leading online marketplace dedicated exclusively to selling FSA-eligible products – is urging individuals who are enrolled in FSAs to be aware of the June 30 FSA spending deadline to avoid losing unused funds.
"June 30 is one of the most common, but least talked-about deadlines for FSA users," said Rachel Rouleau, chief compliance officer for Health-E Commerce. "In total, FSA users forfeit over a billion dollars every year because of missed deadlines, and we're on a mission to change this by educating account holders about their deadlines and the many valuable ways they can spend their tax-free healthcare dollars."
What is an FSA? An FSA is a tax-advantaged account that consumers can enroll in through their employer-sponsored benefits program. Employees can contribute to the account through pre-tax payroll contributions and employers may contribute as well. 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 to a missed deadline.
1) Know your deadline. All FSAs have a deadline by which funds must be spent each year. While the majority of private employers that offer an FSA have a December 31 deadline, a common deadline for government and many state plans is June 30. The spending deadline is the date by which all funds must be used or they will be forfeited. 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 after their plan year deadline to spend down remaining FSA funds from the previous calendar year.
- Carryover extension. Employers may allow employees to carryover up to $640 in FSA funds from 2024 to 2025.
2) Check your FSA balance. According to a report from the Employee Benefits Research Institute, the average amount that consumers contributed to FSAs in 2022 was $1,291. Roughly half of all FSA users forfeited funds in 2022, and the average amount forfeited was $441. 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.
3) Map your spending through the end of the year. 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, searchable eligibility list that makes it easy to personalize FSA spending and get more value from these accounts by using tax-free dollars to purchase everyday healthcare items. According to FSA Store experts, the average household spends $1,600 a year on items that could be purchased with tax-free FSA funds.
To learn more about FSA deadlines, visit the FSA Learning Center at FSAstore.com.
Media contact: Barbara Tabor, [email protected], 651-230-9192
About Health-E Commerce
Health-E Commerce is the parent brand to FSA Store and HSA Store, online stores 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 through which a portion of every purchase is donated to the Children's Health Fund. 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.
Media Contact
Barbara Tabor, FSA Store, 651-230-9192, [email protected], www.FSAStore.com
SOURCE FSA Store
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