Eye Exams and Glasses Can Be FSA Eligible

As we reach the end of the calendar year again, what seems to be an annual pressure starts to increase with each day when it comes to flexible spending accounts or FSAs. The FSA is designed to allow people to take income earned prior to taxes and deposit it instead in a government-approved account for health spending.

This mathematically gives a person 15 to 30 percent more spending power on health costs versus after-tax payment sources. All sorts of medical costs can be included ranging from copays to prescriptions to medical-related equipment.

IRS Rules and Government Limitations

The first big limitation is that the government puts a cap on how much income can be sidelined into FSA protection. For 2020 that limit is $2,750 annually. The second limitation is that the money must be used for health costs in the year deposited or the owner loses value, and it goes back to the employer who paid it in the first place. This aspect, the “use it or lose it” rule, creates the pressure to spend before the calendar year is over. It also makes sure the owner does not use the FSA to hide income from normal payroll taxes.

There is the ability for an extension if an owner in Boston or elsewhere meets the criteria. That extension can give a person another two and a half months of time from the end of the year to spend on health costs. A carryover balance of $500 is allowed into the next year if a minor amount is left. But they both cannot be offered and used at the same time. It is an either/or situation for the money owner.

Taking Smart Advantage of FSA Funds with an Eye Doctor

If you have not been to the doctor in a while, now is a good time. Prescriptions are valid expenses and if you have any, ranging from allergies to other conditions, they all become eligible to be covered as FSA expenses. In fact, with a good checkup and physical, your doctor may identify a new issue that can be helped as well, also coverable in cost by your FSA. Do not forget an eye exam and a visit to your eye doctor can count too. Catching these issues ahead of time with a checkup can prevent much bigger costs down the road with a bigger problem.

Eye exams and glasses are another big areas that can be covered with FSA funds. Both the exam as well as any treatment and new eyeglass prescriptions are all eligible expenses and can take care of a sizable part of an FSA balance that might otherwise not go anywhere else. More details and specifics of what can be included can be found on the IRS website at this link and complete list.

Call Eyes Over Copley Today!

Folks from greater Boston, including Cambridge, Charlestown, and Brookline are all in the same situation with an FSA. If you have not been to an optometrist in a while or your glasses are starting to see a bit fuzzy, consider a new eye exam and prescription. Eyes Over Copley and our optometrist team can help you identify exactly what is FSA-eligible and get your vision back on track with a new set of glasses.

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