image of US money sprawled out with block letters FSA on top representing 2024 FSA benefits

Maximize Your 2024 FSA Benefits – How to Spend Wisely Before Year-End

by ArticlesBlog

With rising costs in essentials like groceries, utilities, and daily living expenses, families are feeling the pinch on their budgets. As inflation continues to impact household finances, many are looking to Flexible Spending Accounts (FSAs) as a strategic way to stretch their dollars. FSAs allow individuals to set aside pre-tax income specifically for healthcare expenses, reducing taxable income while covering essential medical costs. This means families can save money by using tax-free funds to pay for eligible expenses, freeing up more of their earnings for other needs.

Maximizing FSA Dollars to Offset Rising Costs

For families feeling the strain of increased expenses, FSAs offer significant relief. By making pre-tax contributions, families reduce their taxable income, effectively lowering their overall tax burden. These savings can be directed toward various healthcare expenses, including doctor’s visits, prescription medications, dental care, vision expenses, and even specialized treatments like physical therapy and chiropractic visits.

With the 2024 contribution limit increased to $3,200, families have even more room to allocate tax-free funds toward healthcare costs. This increase allows for more financial flexibility, making it easier to cover routine check-ups, annual eye exams, vaccinations, and unforeseen medical needs without tapping into post-tax income.

Stretching Healthcare Dollars with an FSA

An FSA can be particularly valuable when it comes to planning and budgeting for healthcare. Many families use their FSAs to budget for regular expenses they know will come up, such as yearly physicals, eye exams, and prescriptions. This planning helps avoid unexpected costs that can disrupt a tight budget. And with the wide range of eligible items, FSAs can be a go-to resource for stocking up on over-the-counter medications, first-aid supplies, and other essentials that might not be covered by insurance.

Reducing End-of-Year Pressure with Smart Spending

Families who make a habit of tracking their FSA balance throughout the year are often better positioned to avoid last-minute spending to use up remaining funds. Keeping an eye on FSA spending means they can use the account for regular purchases as needed, rather than scrambling at year-end. And, with options like the FSA grace period or rollover feature (depending on their plan), families have a bit more time to make sure their healthcare dollars are used wisely.

Leveraging FSA Benefits to Offset Everyday Costs

FSAs don’t just help with doctor’s bills; they can also cover a broad array of products and services that ease the burden of everyday health and wellness needs. Commonly eligible expenses like contact lenses, glasses, and safety glasses, can all be paid for with FSA dollars. These added benefits allow families to manage costs that would otherwise be out-of-pocket, providing some relief from the rising cost of living.

Making FSA Dollars Work for You

If you’re looking for ways to maximize your FSA this year, consider scheduling routine healthcare visits, filling prescriptions, or buying necessary health supplies before the end of the year. If you’ve delayed any treatments or check-ups, using your FSA can ensure these expenses don’t affect your regular budget. Additionally, some FSA plans offer the convenience of a debit card, making it simple to pay for eligible expenses directly.

By making the most of this tax-advantaged account, families can keep healthcare costs from being an extra burden, even in today’s high-cost environment. Don’t lose those hard earned FSA funds! Schedule your annual eye exam, upgrade or change your eyeglass frames, invest in safety glasses, or purchase contact lenses at Bissell Eye Care. Call our office at 724-443-6767 or 724-226-0444 today and maximize your FSA benefits before the year ends!

About Bissell Eye Care: John D. Bissell, OD owns and operates Bissell Eye Care servicing Northern Pittsburgh and Alle-Kiski Valley regions. With two locations to treat patients, we offer evening appointments. Bissell Eye Care provides comprehensive eye examinations for the entire family beginning as early as 6 months, ocular disease detection and treatment, eyeglasses, sunglasses, activewear, contact lenses, and low vision examinations for those with significant vision loss. We accept most types of vision and health insurance plans. For more information, visit bisselleyecare.com or call our Bakerstown Office at 724-443-6767 or Natrona Heights office at 724-226-0444.

Concept-words-FSA-adjustments-on-wooden-blocks-on-beautiful-background-from-dollar-bills.

Inflation and FSA Adjustments

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The main purpose and benefit of contributing and using an FSA are that any contributions made are pre-tax dollars. However, any qualified medical expenses paid for using the FSA are tax-free dollars. So you effectively pay no taxes on those expenses, by reducing your taxable income.

Flexible Spending Accounts (FSAs), can help you to spend less on your health care while experiencing the maximum tax benefit. However, you must use monies within the current calendar year to reap the rewards. By spending all of the money in your account before the year-end deadline you ensure you are getting the most bang for your buck.

According to the Society for Human Resource Management, “Employees can put an extra $200 into their health care flexible spending accounts (health FSAs) next year, the IRS announced on Oct. 18, as the annual contribution limit rises to $3,050, up from $2,850 in 2022. The increase is double the $100 rise from 2021 to 2022 and reflects recent inflation.

If the employer’s plan permits the carryover of unused health FSA amounts, the maximum carryover amount rises to $610, up from $570.”

FSAs are pre-tax monies that are placed in an account and are available for use only on approved medical expenses. They differ from a health savings account, HSA, in that the money contributed can only be used for that calendar year. In other words, the FSA accounts are “Use it or Lose it”. As the year quickly draws to a close the question becomes, have you used it?

Common eligible expenses include dentist and doctor visits, procedures, and copays, prescription drug costs or co-pays, laser eye surgery, eye exams, contacts, eyeglasses, and chiropractor visits.

If you have any medical conditions that require special equipment or treatment, these expenses are typically covered as well.

While there are no exceptions that allow that money to be directly paid back to you, there are more options than you might expect as to how to spend the extra money. If you have monitored the amount spent during the year, you have an idea of what is left to spend down as December quickly approaches. There are two cases where you can get a little extra time to spend that money.

  1. A rollover option. This allows you to move up to $570 to next year’s balance.
  2. Grace period. Because most plans fall on the calendar year, this option allows you to use the money for up to 2 ½ months past the end of the year. Why is this? Because during the first few months of the year your account has accrued little funds.

Most FSA accounts come with a debit card and usually have one or the other of these two options but CANNOT have both. However, if you are required to submit a claim, be sure to watch the claim windows in which you are required to submit a claim.

How to spend FSA accounts?

If you have quite a bit left in your account, don’t despair. The list of things that you can spend the money on however is pretty large, leaving many surprised about what they can purchase using their FSA account. To get a full listing of what you’re allowed to spend money by visiting an online FSA store. These stores only sell items that qualify approved purchases using your FSA account.

Some out-of-the-ordinary expenses you can pay for using your FSA account also include:

  • Chiropractor visits
  • Artificial teeth or limbs
  • Qualified service animals, such as a guide dog, including food and grooming costs
  • Travel that was required for medical treatment.

You may also use the FSA for expenses such as hearing, vision, and dental services even if you don’t have insurance for those services.

Keeping track of your FSA account throughout the year and spending in moderation throughout the year will also help to reduce the scramble to use money that you have left as the year comes to an end. Despite the hassle of making sure all the money is spent, FSA accounts are a good way to avoid paying taxes on money that is used for medical expenses.

In today’s high inflation market consumers are utilizing all tools available to maximize their health care benefits and costs. Need to spend down some of those benefit dollars? Call our office at 724-443-6767 or 724-226-0444 to schedule your eye exam before the end of 2022.

About Bissell Eye Care: John D. Bissell, OD owns and operates Bissell Eye Care servicing Northern Pittsburgh and Alle-Kiski Valley regions. With two locations to treat patients, we offer evening and Saturday appointments. Bissell Eye Care provides comprehensive eye examinations for the entire family beginning as early as 6 months, ocular disease detection and treatment, eyeglasses, sunglasses, activewear, contact lenses, and low vision examinations for those with significant vision loss. We accept most types of vision and health insurance plans. For more Information, visit bisselleyecare.com or

FSA

Do You Know Your FSA Balance?

by ArticlesBlog

It’s that time of year. Have you checked the balance in your Flexible Spending Accounts (FSA’s)? This pretax medical deduction can help you to spend less on your health care while experiencing the maximum tax benefit. There is a catch – you must use monies within the current calendar year to reap the rewards. By spending all of the money in your account before the year-end deadline, you ensure you are getting the most benefit from your hard-earned dollars.

FSA’s allow you to set money aside pre-tax from each paycheck to contribute to your yearly medical expenses. The entirety of that account is available for you to use at any time for medical care, including dental and vision. However, as these accounts are annual, which means that you must use these funds prior to the start of the next calendar year.

What does this mean?

Because your FSA account funds typically do not roll over for the next calendar year, unlike health savings accounts or HSA’s, now is a good time to check that balance. If you still have a balance left in your account, consider scheduling an eye exam before you lose those funds.

What is eligible for FSA funds?

FSA funds can be applied to eye exams and some procedures, but they can also be eligible for use for:

  • Prescription eyeglasses
  • Prescription sunglasses
  • Reading glasses
  • Contact lenses and contact lens care

While FSA funds can generally be applied to all these different forms of eye care, some exceptions do exist. For example, while all corrective contact lenses are eligible, the eligibility of lens cases, solutions, and contact lens-specific eye drops depend on the product itself. Some brands may also have different eligibilities, which you should discuss with your prescriber and provider prior to purchase.

Other than reading glasses, FSA’s do not cover non-prescription eyewear, or non-prescription color contact lenses. However, FSA does cover eye exam co-pays and often partially covers some eye procedures such as LASIK, which is deemed medically necessary. This can be especially helpful for those at higher risk for eye conditions, such as those with diabetes.

If you are unable to purchase necessary eye care supplies such as contact lenses in person, it is also good to know that FSA can also be used online, by entering in the card numbers as you would with any spending card. If you do not currently have a spending card associated with your FSA, you may also be able to send a copy of your eye care receipt to your provider for FSA reimbursement. To get the most out of your FSA funds, check your balance today and discuss any needed exams or eyewear with Bissell Eye Care!

About Bissell Eye Care: John D. Bissell, OD owns and operates Bissell Eye Care servicing Northern Pittsburgh and Alle-Kiski Valley regions. With two locations to treat patients, we offer evening and Saturday appointments. Bissell Eye Care provides comprehensive eye examinations for the entire family beginning as early as 6 months, ocular disease detection and treatment, eyeglasses, sunglasses, activewear, contact lenses, and low vision examinations for those with significant vision loss. We accept most types of vision and health insurance plans. For more information, visit bisselleyecare.com or call our Bakerstown Office at 724-443-6767 or Natrona Heights office at 724-226-0444.

DO YOU KNOW YOUR FLEXIBLE SPENDING ACCOUNT (FSA) NUMBERS?

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White paper with text FSA with dollars on the calculator with pen

If you haven’t checked your FSA balance recently, now may be the time to check your account. In 2018, the IRS raised the contribution limit from $2,600 in 2017 to $2,650 for 2018. FSAs are pretax monies that can save an employee up approximately 30% on their out of pocket medical expenses. Employees may use their FSA funds to cover certain qualified medical expenses that their employer’s plan does not cover, such as co-pays and deductibles. Other qualified medical expenses include contact lenses, eye exams, eyeglasses, crutches and hearing aids.

Different than a Health Savings Account, FSA’s must be used within the calendar year. In January of each year, employees must decide how many pretax monies are withheld in the form of payroll deductions. Employees must anticipate what they feel they will spend during that year that is not covered by insurance. Because many employees are concerned when judging what they may spend, they opt not to participate in FSA’s and actually leave money on the table.

Depending on your employer – they can offer employees two options to use it or lose it rule, or none at all. However, the employee must choose one of the two options. The carryover option allows an employee to transfer $500 of unused contributions from one plan year to the next. For example, if an employee has $500 of unused contributions in 2018, then he or she may carry those funds over into the 2019 plan year.

Second, with the grace period option, an employee has 2 1/2 months after the end of the plan year in which to use his or her unused contributions. For example, if an employee has unused contributions at the end of a plan year (December 31, 2018), then he or she must use those contributions by the following March 15, 2019, or risk forfeiting them.

The best solution is to know your balance and prepare to spend down those pretax dollars. Your best move is to do a good job of accurately estimating your healthcare and dependent care expenses for the year so that you don’t run into a situation where you’re struggling to deplete your account balance. But if your company offers one of the above protections, you’ll go in with less risk.

Bissell Eye Care provides comprehensive eye care for the entire family. New designer frames, contact lenses, sunglasses, and protective eyewear are items that can be used to spend down your account.

About the author: John D. Bissell, owner of Bissell Eye Care and Tri-State Low Vision Services, offers comprehensive eye examinations for the entire family, ocular disease detection and treatment, eye glasses, sun glasses, active wear, contact lenses, and low vision examinations for those with significant vision loss. He has undergone specialized training for treatment of low vision by the International Academy of Low Vision Specialists utilizing customized telescopic eyeglasses, prisms and telescopic implants for patients who qualify. The practice accepts most types of vision and health insurance plans.

BALANCE CHECK ON FLEXIBLE SPENDING ACCOUNT BENEFITS

by ArticlesBlog

It’s that time of year. Have you checked the balance in your Flexible Spending Accounts (FSAs)? This pretax medical deduction can help you to spend less on your health care while experiencing the maximum tax benefit. There is a catch-you must use monies within the current calendar year to reap the rewards. By spending all of the money in your account before the year-end deadline, you ensure you are getting the most bang for your buck.

FSAs are pre-tax monies that are placed in an account and are available for use only on approved medical expenses. They differ from a health savings account, HSA, in that the money contributed can only be used for that calendar year. In other words the FSA accounts are use it or lose it. As the year quickly draws to a close the question becomes, have you used it? Being proactive in checking your balance allows you time to react before the year ends.

In October 2016, the IRS released its inflation adjustments which raised the limits for healthcare FSAs. In 2017, the annual FSA contribution limit is increasing by $50 from the previous year. Employees with this employer-sponsored benefit account can contribute a maximum of $2,600. While there are no exceptions that allow that money to be directly paid back to you, there are more options than you might expect as to how to spend the extra money. If you have monitored the amount spent during the year, you have an idea what is left to spend down as December quickly approaches.

There are two cases where you can get a little extra time to spend that money.

  1.  A rollover option. This allows you to move up to $500 to next year’s balance.
  2.  Grace period. Because most plans fall on the calendar year, this option allows you to use the moneys for up to 2 ½ months past the end of the year. Why is this? Because, during the first few months of the year your account has accrued little funds.

Most FSA accounts come with a debit card and usually have one or the other of these two options but CANNOT have both. However, if you are required to submit a claim, be sure to watch the claim windows in which you can ask for reimbursement.

How to spend FSA accounts?

If you have a high balance left in your account, don’t despair. The list of things that you can spend the money on however is pretty large, leaving many surprised what they can purchase using their FSA account. To get a full listing of what you’re allowed to spend FSA money on, visit an online FSA store. These stores only sell items that qualify approved purchases using your FSA account.

Some out-of-the ordinary expenses you can pay for using your FSA account also include:

  • Eye Exams, Eyewear and Contact Lenses
  • Chiropractor visits
  • Artificial teeth or limbs
  • Qualified service animals, such as a guide dog, including food and grooming costs
  • Travel that was required for medical treatment.

You may also use the FSA for expenses such as hearing, vision, and dental services even if you don’t have insurance for those services.

Keep track of your FSA account throughout the year. Spending in moderation throughout the year will also help to reduce the scramble to use money that you have left as the year comes to an end. Despite the hassle of having to make sure all the money is spent, FSA accounts are a good way to avoid paying taxes on money that is used for medical expenses.

About the author: John D. Bissell, owner of Bissell Eye Care and Tri-State Low Vision Services, offers comprehensive eye examinations for the entire family, ocular disease detection and treatment, eye glasses, sun glasses, active wear, contact lenses, and low vision examinations for those with significant vision loss. He has undergone specialized training for treatment of low vision by the International Academy of Low Vision Specialists utilizing customized telescopic eyeglasses, prisms and telescopic implants for patients who qualify. The practice accepts most types of vision and health insurance plans.

HAVE YOU SPENT DOWN YOUR FLEXIBLE SPENDING ACCOUNT?

by ArticlesBlog

Perhaps you over budgeted for this year’s Flexible Spending Account (FSA) and coming to the end of the year have too much left in the account. Are you taking steps to use up those monies? Depending on your employer and the type of plan you have, left over monies may or may not be eligible to carry over into 2015. So now is the time to act.

Confused on how and what an FSA is? A Flexible Spending Account (FSA) is a tax-favored program offered by employers that allows their employees to pay for eligible out-of-pocket health care and dependent care expenses with pre-tax dollars. By using pre-tax dollars to pay for eligible health care and dependent care expenses, an FSA gives you an immediate discount on these expenses that equals the taxes you would otherwise pay on that money.

In other words, with an FSA, you can both reduce your taxes and get more for your money by saving from 20% to more than 40% of what you would normally pay for out-of-pocket health care and dependent care expenses with after-tax (as opposed to taxed) dollars.

Your participation in any FSA is completely voluntary, and it’s important to remember that unlike other Federal benefits, your FSA election is only effective for one Benefit Period. In other words, you must enroll each year that you choose to participate. If you do not enroll during Open Enrollment in November and December each year, you will not be able to participate in the next Benefit Period, unless you experience a Qualifying Life Event that allows you to make an election outside of Open Enrollment.

The most common type of FSA is used to pay for medical, vision and dental expenses not paid for by insurance; usually deductibles, copayments, and coinsurance for the employee’s health plan. Over-the-counter medical devices, such as bandages, crutches, and eyeglass repair kits are allowable. Generally, allowable items are the same as those allowable for the medical tax deduction, as outlined in IRS publication 502.

Some employers choose to issue a debit card to their employees who participate in the FSA. Participants may use the debit card to pay for their FSA-eligible expenses at the point of sale. Pharmacies and grocery stores who choose to accept the debit card as payment must disallow transactions at point of sale if the participant attempts to pay for items that are not eligible under an FSA. In addition, employers still must require employees to provide itemized receipts for all expenses charged to the debit card.

The key in budgeting and using the FSA account is unless your employer approves carrying monies forward into the next year, these pretax dollars must be spent in the current calendar year. So as the year comes to a close, if you have monies left in your account, consider purchasing a new pair of eye glasses, extra contact lenses, contact solution or some other type of approved medical deduction so you don’t lose monies you’ve put into your account.

About the author: John D. Bissell, owner of Bissell Eye Care and Tri-State Low Vision Services, offers comprehensive eye examinations for the entire family, ocular disease detection and treatment, eye glasses, sun glasses, active wear, contact lenses, and low vision examinations for those with significant vision loss. He has undergone specialized training for treatment of low vision by the International Academy of Low Vision Specialists utilizing customized telescopic eyeglasses, prisms and telescopic implants for patients who qualify. The practice accepts most types of vision and health insurance plans.