As you near the end of the year, it’s a great time to check your employee benefit plans to make sure your vision health gets the attention it deserves! Hopefully, you have already used your vision plan benefit for your annual comprehensive eye exam (if not, there is still time to schedule one), but did you know that you can use your Flexible Spending Account (FSA) to help cover the costs of your prescription eyewear (sunglasses, glasses and contact lenses)?
An FSA program allows you to contribute up to $,2750 per individual (in 2021) for certain out of pocket health care expenses – including almost any eye health product you can think of! FSA contributions are deducted from your paycheck before taxes. The amount you are allowed to contribute could change every year, so check with your employer to make sure you are taking full advantage of this benefit.
It is estimated that over 60% of employers in the United States offer FSAs to their employees, so the best place to start is with your Human Resources (HR) department or direct supervisor for the details of the plan offered. Although employers can make contributions to your FSA, generally you, the employee, make the contribution through a deduction from your paycheck. Many employers allow you to sign up for an FSA during the annual “Open Enrollment” period for other benefits.
FSAs can vary by employer, but there are some basic rules that apply across them all for the IRS to approve them.
You can only contribute to an FSA through your employer.
Participation is NOT required. Employees and employers may fund them, but employers don’t have to.
Each year has a different limit for how much can be contributed. In 2021 it is $2,750.
That money is considered “use it or lose it” by the end of the calendar year. Make sure to estimate out-of-pocket expenses before you decide how much to contribute to your FSA. Sometimes, employers offer a grace period to submit expenses for reimbursement, but in most cases if you don’t use the funds by the end of the year, you lose that money.
Keep your receipts! Expenses are submitted to your employer for reimbursement after they are incurred.
No. Health Savings Accounts are only available to people who have a High Deductible Health Plan. Check with your employer for additional details.
Reimbursable expenses related to eye and vision health include:
The IRS has a complete list of all expenses eligible for reimbursement here –https://www.irs.gov/publications/p502#en_US_2019_publink1000263793 or search the IRS.gov site for Publication 502.
Now’s the time to take advantage of your FSA. Head to your eye doctor or find one nearby and check out those new frames or stock up on supplies. Don’t forget, if you didn’t take advantage of your employer’s FSA this year, don’t miss out for 2022! Learn more about health care benefits at healthcare.gov.