Buzz
If you hold a Flexible Spending Account (FSA), the clock is ticking to utilize those funds. Depending on your employer’s policies, any unused FSA money by the end of the grace period might be forfeited, and no one wants to lose hard-earned cash.
As the deadline nears for many FSA account holders, here are several innovative ways to spend your balance, along with key details about the annual carryover limits for 2024 and 2025. This information is particularly helpful if you’re unclear about how FSAs work or what expenses qualify under the plan.
Understanding Flexible Spending Accounts (FSAs)
An FSA is a spending account provided by your employer. You contribute pre-tax income to this account, which can then be used for various healthcare-related costs. While similar to a Health Savings Account (HSA), the FSA differs in a few critical ways—most notably, HSA funds carry over annually, eliminating the pressure of a spending deadline.
With an FSA, you generally must use all funds by December 31 of the contribution year, or you risk losing the remaining balance. Your FSA likely covers more expenses than you think, and if you need to spend the funds before the deadline, this guide can help. Many pharmacies also indicate FSA-eligible items when you shop online.
What Are the FSA Contribution and Carryover Limits for 2024?
Use it or lose it. | Rapeepong Puttakumwong, Moment Collection, Getty ImagesEmployee contribution limits have consistently risen over the past few years, climbing from $2750 in 2021 to $2850 in 2022. By 2023, the limit increased to $3050, and for the 2024 plan year, employees can allocate up to $3200 via payroll deductions. This amount will further rise to $3300 for the 2025 FSA plan year.
Carryover limits have also seen a steady increase. For FSAs permitting fund rollovers, the maximum amount is $640 from 2024 to 2025. This cap will rise to $660 for the 2025 plan year.
Practical Ways to Utilize Your FSA Funds
Discover Online Therapy Options
Surprisingly, FSA funds can be used for online therapy platforms such as BetterHelp, where you can connect with licensed therapists in just a few days. New users might also qualify for discounts on their initial month of therapy.
Even if you’re not utilizing online platforms, mental health therapy is generally covered. However, services like marriage or family counseling might not qualify, so it’s wise to confirm with your provider beforehand.
Invest in a New Pair of Eyewear
You can also visit stores like Warby Parker while you’re at it. | Michael M. Santiago/GettyImagesVisit your optometrist, obtain a vision prescription, and use your FSA funds to purchase new glasses, contact lenses, or sunglasses. Trendy brands like Warby Parker are also FSA-eligible, allowing you to spend your funds stylishly.
Contact lens solution is also eligible, and you can even use your FSA funds to purchase non-prescription reading glasses.
Consider Acupuncture
While opinions on acupuncture’s effectiveness are mixed, certain studies suggest it can help manage chronic pain, arthritis, and even depression. If you’ve been interested in trying it, now is the perfect opportunity: FSA funds often cover acupuncture sessions. You can also purchase acupressure mats without a prescription. Chiropractic visits may also be eligible for FSA reimbursement.
Stock Up on Over-the-Counter Essentials
It may come as a surprise, but the majority of over-the-counter medications qualify for FSA spending. | FatCamera, E+ Collection, Getty ImagesIf your supply of common over-the-counter (OTC) medications is running low, you’re in luck: Most are FSA-eligible. This covers headache pills, painkillers, antacids, heartburn remedies, and other essentials for your health.
Pamper Your Feet
Relieve your feet with supportive inserts, which are FSA-eligible. Other foot care items like sleeves, rollers, callus trimmers, and even foot massagers or circulators may also qualify.
Achieve Healthy Skin
Acne treatments and various skincare products are also FSA-eligible. | Boy_Anupong, Moment Collection, Getty ImagesYes—acne treatments, toners, and other skincare items qualify for FSA spending. Some of these may require a prescription for reimbursement, but your doctor can easily assist with that. Verify your FSA plan’s rules to determine if you need individual prescriptions or if multiple products can be included on one.
Speaking of skincare, lip balm and basic moisturizing creams are excellent ways to use your FSA funds—no prescription needed. Vibrating face masks are also eligible without a prescription.
Restock Your Medicine Cabinet
FSA funds are a great way to stock up on essentials like thermometers and more. | Milan_Jovic, E+ Collection, Getty ImagesIf your medicine cabinet is running low or you’re starting from scratch, fill it with FSA-eligible items. Here are some options that don’t require a prescription:
- Bandages
- Joint braces
- Thermometers
- Blood pressure monitors
- Heating pads
- Ice packs
First aid kits are also FSA-eligible and don’t require a prescription. Many kits include pain relievers and other medications.
Ensure You’re Prepared in the Bedroom
Condoms, pregnancy tests, baby monitors, and ovulation tests are all FSA-eligible. Birth control is also covered with a prescription, and nursing mothers can purchase electric breast pumps. Menstrual products like cups, pads, and tampons are also included.
Get Ready for Your Next Trip
If you have a vacation coming up, use your FSA funds to purchase travel essentials, such as:
- Sunscreen (many expert-recommended options qualify)
- Motion sickness pills
- Headache medication
- Compression socks for long flights (ensure they’re rated 30-40 mmHg or higher)
Improve Your Sleep Quality
Sleep better with the right healthcare products. | Yellow Dog Productions, The Image Bank Collection, Getty ImagesIf you struggle with sleep, sleep aids are FSA-eligible, though a prescription is required. Sleep masks and breathing strips, however, often qualify without one.
For nights when you’re battling a cold or flu, a humidifier can be a game-changer—and it’s also FSA-eligible without a prescription.
Visit the Dentist
Have you been delaying a dental visit? Now’s the perfect time to book that cleaning. | Portra, E+ Collection, Getty ImagesWhile toothpaste and teeth whitening treatments aren’t FSA-eligible, most dental expenses are. This includes co-pays, deductibles, cleanings, X-rays, fillings, and even braces. Some over-the-counter products, like night guards for teeth grinding and cleaning solutions for retainers or dentures, also qualify.
Gain Insights Into Your Health
Ever wondered about your genetic predispositions? You can purchase a 23andMe Health Service kit (excluding ancestry or trait reports) to explore how your genes might influence your risk for specific health conditions.
Experiment with New Tech Gadgets
If you have leftover FSA funds, consider investing in high-tech devices you’ve been curious about but hesitant to buy. Options include light therapy for acne, anti-nausea wristbands, the Oura smart ring, stethoscopes, and body composition scales.
Shop on Amazon
Amazon offers a wide range of FSA-eligible products, including foot care items, cold and allergy remedies, eye care supplies, and first-aid kits.
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