How To Use Fsa Card

What is an FSA bill of fare?

FSA bank cards

An FSA card is a debit card used to access your Flexible Spending Account (FSA) to pay for approved out-of-pocket medical expenses. Understanding your vision insurance, FSA and FSA debit bill of fare is important, as these benefits tin can help encompass everything from routine vision checkups and cosmetic lenses to over-the-counter and prescription eye drops and medications.

Before nosotros explore what kinds of products and services are eligible to be covered by your FSA bill of fare, let's first go over what exactly an FSA card is and why information technology is so useful.

Flex benefits cards

Issued by an insurance provider, your FSA card goes past many names: flexible spending debit carte, FSA benefits card and even sometimes the term HSA card is used interchangeably for it. An HSA does differ slightly from an FSA, and so information technology is of import to verify which type of carte you lot have.

The first affair that you need to know about your flex benefits carte is that the money that is deposited on the menu from your voluntary payroll deductions is completely tax gratuitous. You could consider your contributions to your FSA menu a piggy banking concern wherein your money can sit, untaxed, until you decide to use it on FSA eligible medical products and services.

FSA contribution limits and the IRS

As of 2020, regarding FSA contribution limits, the IRS has stated, "An employee who chooses to participate tin can contribute up to $2,750 through payroll deductions during the 2020 plan year. Amounts contributed are not field of study to federal income tax, Social Security tax or Medicare tax. If the plan allows, the employer may likewise contribute to an employee'south FSA."

In October, the IRS announced that the 2021 FSA contribution limit will remain the same ($2,750). The IRS limits on FSA card contributions and regulations are subject to modify, and information technology's of import to ever be aware of current FSA carte regulations by checking the IRS website for the latest information.

FSA eligible products and services

In one case you take received your flexible spending credit menu, you can check the residual on the card at any time. This can assistance you upkeep health expenses on a monthly and yearly ground.

The listing of medical products and services on which y'all can use your FSA dollars covers preventive medication and supplies for well-nigh every medical condition.

The vision-related out-of-pocket products and services eligible for coverage past your FSA card include:

Vision exams
Over-the-counter (OTC) and prescription eye drops
Products for eye pain relief
Eye pressure monitor
Certain eye surgeries
Preventive eye care medications
Corrective contact lenses
Eyeglasses and accessories
Eyeglass repair kits

Using your FSA debit card

Your flexible spending account card works but similar any bank-issued debit card works. Check your residue to ensure that at that place are funds to cover your purchase, and so y'all are gear up to use it to cover your purchases. At that place is no paperwork to fill out or hurdles to jump through when swiping your card at the register.

Practice FSA bill of fare funds expire?

Using your FSA card is incredibly easy and user friendly, but in that location are a few things to keep in mind if yous are new to the world of flexible spending accounts.

First and perhaps most of import, yous can lose your contributed funds if you practise not utilize them within a set time catamenia. This fourth dimension catamenia varies based on provider and employer, merely be sure to bank check with both to avoid letting your difficult-earned funds expire before you tin can use them.

Encounter RELATED: FSA rollovers

Contempo changes in the way the IRS regulates FSA funds too mean that there is now more flexibility in your ability to change your contribution to the fund mid-coverage year. While this was usually not immune unless the FSA cardholder changed their spousal relationship or taxation condition, the IRS has begun loosening their formerly stricter rules on how 1 can manage their FSA menu funds.

To notice out more about how your FSA funds can be used, what items or services are eligible for coverage by your FSA card or to learn more than well-nigh how to include vision care in your flexible savings account spending programme, consult your employer'south plan ambassador or telephone call the toll-free number listed on the back of your FSA card.

Folio published on Monday, Nov 9, 2020

Folio updated on Wed, March 16, 2022