How to use your FSA in 2014

Thursday, January 09 2014

How to use your FSA in 2014

Did you know that starting in 2014, you can use up to $500 of your 2013 unused Flexible Spending Account funds? That’s right. The U.S. Department of Treasury and the IRS have modified the “use it or lose it” rule, which prohibited rollover of FSA funds and forced account holders to forfeit unused dollars remaining in their accounts at year-end.

Now, assuming your employer makes proper provisions, you can use up to $500 of unused FSA money from last year. Your employer is required to update the paperwork to activate the changes to the rule. If your employer currently offers a grace period to use leftover funds from the previous year, you will likely not benefit from this change.

What is FSA?

If your employer offers a flexible spending account plan, you are able to set aside up to $2,500 of your pretax income to use toward medical, dental and vision expenses. FSA covers numerous medical treatments, procedures, medications and equipment, including laser eye surgery and LASIK. A complete list of FSA eligible expenses can be found here.

How to use your FSA

When it comes to eye care, there are several ways you can use your FSA in 2014, including:

• Eye exams for the entire family.
• A second pair of prescription eyeglasses.
• A pair of prescription sunglasses.
• LASIK.
• A premium lens option if you are having cataract surgery.

The cost of LASIK surgery is typically more than $2,500, but your FSA will cover a large portion of the cost. Key-Whitman also offers flexible payment options and payment plans that can be combined with your FSA to make covering the cost of vision correction surgery even easier. (You must schedule a free screening in order to learn more about our payment packages and to select the option that best suits your needs.)

If you’ve been considering LASIK eye surgery, utilizing your FSA funds will allow you to save money on the cost of vision surgery. It’s a new year for FSA and now is the time to plan how you will use your funds in 2014. Contact Key-Whitman to schedule a free consultation. We will help you decide if a LASIK procedure is the best use of your FSA.

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