What Is A Flexible Spending Account (FSA)?
It is November 2022 and you should start thinking about how to leverage your 2022 Flexible Spending Account (FSA) and Health Savings Account (HSA) dollars. An FSA is a savings account that you pay into throughout the year via payroll deductions. It is a medical spending account offered by your employer. If you have a health plan through your job, you can use an FSA to pay for healthcare costs such as:
- Vision Expenses
- Dental Expenses
- Some Drugs
- Other Covered Healthcare Costs
FSA contribution limits for 2022 have increased to $2,850.
Many people do not know that you can have an FSA and HAS. You can have an HSA if you have a Limited Expense FSA. The Limited Expense FSA lets you put funds aside for dental, preventative care expenses, and vision expenses only. Many also are eligible for a Dependent Care FSA.
The 2022 FSA time period is January 1, 2022, through December 31, 2022. You are allowed to carry over into 2023 and must use the remaining funds by March 15, 2023, and file a claim by April 15, 2023. It is important to note that the 2022 FSA funds can only be used to reimburse eligible expenses for care provided from the effective date of your enrollment through March 15, 2023.
Flexible Spending Account 2022 And Eligible Items.
- Eye Glasses
- Eye Drops (OTC)
- Eye Equipment (prescription glasses and sunglasses and prescription contact lenses. Items associated with the maintenance and care of these are also considered eligible reimbursable expenses under consumer-directed healthcare accounts.
- Eye Exam
- Eye Mask for Pain Relief
- Eye Pressure Monitor
- Eye Surgery
- Eye Treatment Medication (Source FSA: Eye treatment medications are eligible for reimbursement with a prescription with a flexible spending account (FSA), health savings account (HSA), a health reimbursement arrangement (HRA), or a limited-purpose flexible spending account (LPFSA). Eye treatment medication reimbursement is not eligible with a dependent care flexible spending account (DCFSA). If this is an over-the-counter (OTC) eye treatment medication, it would be fully eligible with an FSA, HSA, HRA, or LPFSA.
- Eye Glass Accessories (Eye Glass Screw Driver, Pre-Moistened Lens Wipes, Keychain Reading Glasses, Eye & Ear Glass Droppers, Reading Glasses On Your Phone, Lens Cleaning Spray, Lens Wipes, Anti-Reflective Leans Cleansing Spray, Repair Kit, Nose Pads, Sunglass Reader With Magnetic Detachable Polarized Lens, Sunglass Reader With Smoke Tint,
Many employers offer the FSA rollover which allows you can add $570 of your 2022 funds to your 2023 contribution, which would give you $3,420 to spend in 2023.
In 2023, employees can put away as much as $3,050 in an FSA, an increase of about 7% from the current tax year’s cap of $2,850. Meanwhile, single workers who want to fund an HSA can save up to $3,850 next year, a 5.5% increase from 2022, while families can save up to $7,750, up 6.2%.
Important FSA Dates And Deadlines (Source: FASFED):
|FSAFEDS Event or Deadline||Key Dates|
|Federal Benefits Open Season for 2023 enrollments||Begins on November 14, 2022, and ends on December 12, 2022|
|The 2023 benefit period begins||January 1, 2023|
|Last day to incur expenses using your 2023 HCFSA or LEX HCFSA||December 31, 2023|
|Last day to incur expenses using your 2023 DCFSA||March 15, 2024|
|Last day to submit all claims for the 2023 benefit period||April 30, 2024|
|Last day to submit a qualifying life event for changes that
result in an increase of your annual election
|Last day to enroll as a new hire||Within 60 days from the date of hire, prior to October 1|
Contact us if you have questions about your FSA and or HSA accounts. We Look forward to seeing you soon.