Although rules for flexible health spending accounts have themselves become more flexible, some employees may still have a New Year’s deadline for spending their balances.
Flexible health spending accounts let workers set aside pretax dollars to pay for out-of-pocket costs not covered by health insurance, such as co-payments, deductibles and prescription drugs.
Most large employers who offer flexible spending accounts, or F.S.A.s, either give workers an extra two and a half months after year’s end to spend the money in their accounts or, increasingly, let them carry over part of their balance — up to $500 — into the next year, according to a 2016 report.
But just under a quarter of big employers allow no wiggle room; workers must spend the balance in their accounts by the end of the year or forfeit the money.
So, if your employer sets a firm Dec. 31 deadline, this is a good time to check and see if there is any money left in your account, and what sort of care or health-related items you might need, so you do not leave money on the table.
Orthodontic treatment is a qualified FSA expense. If you have an upcoming appointment or would like to schedule a visit, please contact us today.