Here’s Exactly What to Buy with FSA Funds

It's November, so for many people, it's time to use up the remaining money in your flexible spending accounts! Today we're looking at what to buy with these FSA funds, including items you might not know are eligible, plus excellent reader suggestions from our last discussion about this. Employers aren't required to provide FSA accounts (which max out at $3,300), but if yours does, they're a great way to lower your taxes while paying for deductibles, co-payments, co-insurance, some prescription and over-the-counter drugs, and much more.

Readers, what are your recs for what to buy with FSA funds? Does your employer require that you use them all by year-end? (See below for more info on that!)

Before we get to our lists, here are are a few more key things to know about FSAs:

1. You may not have to rush to spend your funds by December 31. Some employers allow a grace period of up to 2.5 months and/or give the option to carry over up to $660/year.

2. You can't use FSA money for insurance premiums.

3. If you're buying insurance via the ACA (anybody else freaking out about the premium hikes?), marketplace plans do not include FSA accounts.

4. Better safe than sorry: Before purchasing anything, double-check that it's eligible under your company's FSA to avoid surprises later.

5. The lists below are only the tip of the iceberg, so, again, check the website or paperwork for the company your FSA is with.

What to Buy with Your FSA Funds

What to Buy with Your FSA Funds: Misc. Reader Suggestions

• period underwear
• massage gun, e.g., Theragun
• sunscreen (SPF 15+)
• eyeglasses
• physical therapy-grade ice packs
• first aid kits (note: AAA sells car kits)
• blood pressure monitor

What to Buy with Your FSA Funds: The Basics

• prescription meds
• OTC meds (with a doctor's prescription)
• preventative care
• specialist visits not covered by your insurance
• dental care, including out-of-pocket costs
• vision care, including out-of-pocket costs
• eye care: prescription contact lenses and glasses, eye drops, and related eye-care items

What to Buy with Your FSA Funds: Beyond the Basics

Know that some of these expenses may require a Letter of Medical Necessity (abbreviated as LMN), so check your account rules and talk to your doctor.

• home health care (e.g., crutches, bandages, antibiotic ointment, thermometers)
• menstrual products (pads, tampons, menstrual pain relief)
• sexual health: birth control, condoms, fertility tests
• prenatal vitamins
• breast pumps and breastfeeding accessories
• smoking cessation products/programs
• medical-related transportation costs
• oral care: tooth pain relief, water flossers, denture cleaning tablets
• foot care: orthotics, foot cream, callus/corn removers
• skincare: dermatologist visits; treatments for acne, eczema, psoriasis, and rosacea
• Botox (when doctor-recommended for excessive sweating, overactive bladder, and migraines)

What Not to Buy with Your Funds: Ineligible Items

• cosmetic surgery and procedures (e.g., laser hair removal, facelifts, chemical peels, microdermabrasion)
• lotions and moisturizers (though diaper rash cream is typically covered)
• vitamins/supplements (Letter of Medical Necessity required)
• toothbrushes, toothpaste
• insect spray
• postpartum: diapers, wipes, formula, nursing bras, non-medical baby monitors
• personal training and gym memberships (for general health)
• marriage or career counseling

Readers, let us know! What are your favorite things to buy with your FSA? Do you have to use it or lost it by December 31?

Stock photo via Pexels / Towfiqu barbhuiya.

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