While mid-year rule election changes may give some individuals more flexibility to carry over FSA funds into 2021, approximately 25% of account holders do not have this option and will have more money than usual left in their account to spend down.
NEW YORK (PRWEB) November 09, 2020
The end of the year is a scramble, and it’s particularly stressful this year for the millions of Americans enrolled in flexible spending accounts (FSAs) who need to spend down account funds by December 31 or risk forfeiting those dollars back to their employers. FSAstore.com, the largest online retail source for everything flex spending with zero guesswork, today released a list of the most common ways to spend down FSA dollars, as well as some new and unexpected options.
“While mid-year rule election changes may give some individuals more flexibility to carry over FSA funds into 2021, approximately 25% of account holders do not have this option (SHRM) and will have more money than usual left in their account to spend down,” said Rida Wong, president of Health-E Commerce, parent brand of FSAstore.com and HSAstore.com, the first and most extensive online e-commerce sites for exclusively FSA- and HSA-eligible products.
According to FSAstore.com’s own internal research conducted this past October, more than 50% of FSA users will have more FSA funds to spend this deadline period than they did last year, so making an end-of-year plan is especially important for 2020 FSA deadline season.
An FSA is an employer-sponsored plan that allows individuals to contribute pre-tax income to a special account that can then be used to pay for an extensive list of eligible products and services. These accounts are funded on a yearly basis and any money left unspent at the end of each plan year is forfeited (unless the employer offers a rollover or Grace Period option). However, because many consumers were unable to seek healthcare services due to COVID-19 restrictions this year, many FSA users have excess funds to spend and should create a spending plan now to avoid forfeiture of funds.
Easy ways to spend and save before December 31 at FSAstore.com
According to the experts at FSAstore.com, here are 10 ways consumers can spend down remaining funds before year end:
1. Get a flu shot to protect you and your family from seasonal illnesses. The CDC provides a great rundown on what families should know.
2. Upgrade everyday medical supplies, like thermometers, heating pads, and steam inhalers.
3. Invest in at-home COVID-19 test kits and make holiday travel and gatherings safer.
4. NEWLY ELIGIBLE! Shop over-the-counter medications like ibuprofen, acetaminophen, cold and allergy treatments and more, which became fully eligible for FSA spending in 2020.
5. NEWLY ELIGIBLE! Shop menstrual care products like tampons, pads, period underwear, and more. These health essentials became FSA eligible for the first time in 2020.
6. Get an eye exam or buy new contacts or glasses.
7. Buy everyday essentials that fit your lifestyle, such as athletic tape and braces for the sports lover; first-aid kits for the outdoor enthusiast; mom-and-baby bundles for expectant or new parents; sun and skin care for warm weather travels; and much more.
8. Boost your health and wellness management with a high-tech health device, like smartphone-enabled blood pressure monitors, pulse oximeters, pain relief devices, baby health monitors and more.
9. Care for your overall well-being with drug-free pain relief products and devices, light-therapy acne treatments and preventive care items.
10. Save time by shopping FSAstore.com’s product bundles, which feature related products you need in one package. Bundles range in cost from $45 to $400 and include things like a Baby Care Bundle, Family Essentials, Pain Relief and Travel Essentials.
In addition to maximizing your FSA by exploring the wide variety of eligible products, experts at FSAstore.com also offer these simple tips for account holders at year end:
1. Keep track of deadlines. An FSA can allow a Carryover Option, a Grace Period and/or a Run-out Period option – or none of the above. To learn more about deadlines and possible extensions, read our guide. And check with your FSA administrator to see if these deadlines apply to your account.
2. Be a smart spender. Use available funds in your FSA to cover medical services like office copays and deductibles, LASIK surgery, medical acupuncture, chiropractic care, orthodontia, pain relief orthotics, and flu shots.
3. Reduce paperwork. If your employer offers an FSA debit card, use this option to reduce paper claims when it comes to eligible products. When using an FSA debit card on FSAstore.com, you reduce your chance of having to supply purchase documentation, as all products sold on the site are guaranteed FSA eligible.
About Health-E Commerce
Health-E Commerce is the parent brand of FSAstore.com, HSAstore.com, and WellDeservedHealth.com, a family of brands serving the 70+ million consumers with tax-free health and wellness accounts. Since 2010, Health-E Commerce's brand portfolio has led the direct-to-consumer e-commerce market for tax-free health and wellness benefits and helped partners and everyday Americans benefit better through its 100% eligible product selection and easy-to-understand educational resources. Health-E Commerce plays an essential role in consumer advocacy in the tax-free health space through both advocating for eligibility of important new categories within the IRS-approved list of eligible medical expenses and leading a committee of industry experts to promote the important national conversation around product safety and authenticity.