Before you say goodbye to 2023 or plan your New Year’s resolution, add this important task to the top of your end-of-year to-do list: Use up the rest of the money in your flexible spending account (FSA) before December 31st.
You may decide to drain your FSA by using the funds to buy over-the-counter (OTC) medications but be aware that not all OTCs are eligible. The FSA Store has a comprehensive list showing common OTC medications and devices, indicating which are eligible, which are not eligible, and which are eligible with a doctor’s prescription or Letter of Medical Necessity.
Some plans offer grace periods, allowing you to continue using up to $570 of any remaining funds until March 15. But be aware that not all companies extend this option, so check with your human resources department or benefits office to see if yours does.
Also remember that you still can use your FSA to buy many eligible items other than OTC medications at the drugstore. Examples include:
Sunscreens with at least SPF 30;
Bandages;
First-aid wraps;
First-aid kits;
Reading glasses;
Contact lens solution;
Contraceptives;
Pregnancy tests;
Vaccinations, such as flu shots;
Screening tools, such as blood-pressure monitors;
Carpal tunnel wrist supports; and
Medical thermometers.
Again, check your plan details before you hit the drugstore aisles.
