FSAstore.com releases smart money tips for flexible spending accounts ahead of March 15 grace period deadline

NEW YORK, Feb. 7, 2022 /PRNewswire-PRWeb/ -- Smart money moves are at the top of everyone's to-do list these days. This year, as consumers wade through a complex tax season, they are also up against expiring flexible spending account (FSA) deadlines. FSAstore.com, the first and leading online marketplace dedicated exclusively to simplifying the process of using FSAs, has released tips to help consumers make smart money moves with their FSA before the March 15 grace period deadline, and before temporary deadline and rollover extensions expire this year.

"An FSA is a high-value employee benefit because it allows account holders to pay for thousands of dollars worth of eligible healthcare expenses with tax-free funds, and that's always a smart money move," said Preston Farrington, CEO, Health-E Commerce, parent brand to FSAstore.com. "Unfortunately, account holders forfeit millions of dollars each year to a missed deadline, and this year is expected to be worse than ever due to confusion about deadline extensions. That's why we're urging all FSA holders to check with their employers or FSA administrators to confirm their deadlines and to spend down remaining funds before time runs out."

The grace period deadline is an optional deadline employers can offer that gives employees more time – typically two and a half months after the plan year end date – to spend down FSA funds from the previous plan year. For example, if like most FSAs, your plan year ended on December 31, 2021, you may have until the March 15 grace period deadline to continue to spend down last year's money. Temporary grace period extensions that were enacted during the peak of the COVID-19 pandemic in 2020 were not only temporary, they were optional. And while consumers could still see the benefit of an extended grace period through the end of this year, these temporary extensions end for good in 2022. Meanwhile, fewer than 50% of employers offered an extension for 2021 funds.

According to FSA Store, annual FSA forfeitures have increased year over year and cumulative forfeitures are currently estimated to exceed $1 billion in 2022. Following are three things FSA users should understand that can help them avoid forfeiting unused funds to a missed grace period deadline and turn their FSA into a smart money move:

• Beware the March 15 grace period. If your employer or FSA administrator has not clearly communicated the details of your grace period deadline, contact them to confirm if you have a grace period deadline and what the date is. Then, check out this list of eligible FSA expenses and learn how you can spend down remaining funds in meaningful ways.
• Maximize FSA contributions and reduce taxable income. Mapping out your projected health needs can help ensure you are contributing the correct amount to your FSA, while accounting for potential health needs throughout the year. Tools like FSA calculators can help you identify expenses you might incur for yourself and your dependents. This can make it easier to budget and allocate tax-free healthcare dollars.
• Use tax-free dollars for everyday health needs. Think beyond eyeglasses and exams when using FSA funds. For example, you can use FSA dollars on products and services to manage specific health needs, from diabetes to high blood pressure or arthritis to acne. You can also use your FSA to purchase items you use every day, like acne-fighting face lotion, cold and allergy products, menstrual products, over-the-counter medications, and more.

Hot FSA-eligible buys for 2022
To mitigate FSA forfeitures and help the estimated more than 35 million people enrolled in these tax-advantaged accounts use, not lose, their remaining dollars, FSAstore.com has also released the following list of top FSA-eligible products for 2022:

• Aura Revive Heated Deep Muscle Pain Relief Device
• dpl IIa Professional Acne Treatment Light Therapy
• 23andMe Health Service
• Ultimate Foot Circulator with Remote
• Dpl Oral Care Light Therapy System

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About FSAstore.com
FSAstore.com is flex spending with zero guesswork. It's both the largest online marketplace for exclusively FSA-eligible products and an educational resource that you can actually understand. It's the company's mission to help millions of FSA holders manage and use their accounts, and save on more than 4,000 health items using tax-free funds.

About Health-E Commerce
Health-E Commerce is the parent company of FSAstore.com, HSAstore.com and WellDeserved, a family of brands that serve the 60+ million consumers with pre-tax health and wellness accounts. The company has also created Caring Mill, a popular private-label line of health products that benefits Children's Health Fund and enables customers to make a donation with each purchase. Since 2010, the company's brands have led the direct-to-consumer e-commerce market for pre-tax health and wellness benefits. Health-E Commerce plays an essential role in expanding product eligibility for important new categories within the IRS-approved list of eligible medical expenses like sunscreen and breast pumps. The company leads a committee of industry experts to promote the important national conversation around product safety and authenticity.

Media Contact

Barbara Tabor, tabor PR, 651-230-9192, [email protected]

SOURCE FSAstore.com