Flexible spending arrangements (FSAs) and Health Savings Accounts (HSAs)can help you spend less on health care, but only if you use yours correctly. FSAs require spending all the money in it before a year-end deadline.
WHAT IS IT?
FSAs are tax-advantaged accounts that can be used for medical expenses only; they’re sometimes also called flexible spending accounts. They’re different from health savings accounts, or HSAs, in that the money can be spent only in the calendar year it’s contributed.
In other words, FSA funds are use it or lose it, and any unused money left over at the end of the year is no longer yours. Unused funds go to your employer, who can split it among employees in the FSA plan or use it to offset the costs of administering benefits.
According to IRS rules, under no circumstances can your boss give the money back to you directly, Once the plan year is over, that money is gone. So if you have any left toward the end of the year, you’ll need to figure out when and how to spend it. You have more options than you might expect.
HOW TO SPEND IT
Most people do not understand that the list of eligible expenses is quite expansive. Routine expenses can actually be FSA and HSA-applicable.
Sparrow Health & Performance offers the following services that you may submit an FSA/HSA claim for:
IV Therapies prescribed by our physician. Brain mapping and Neurofeedback Training. BioScan. Prescribed Nutritional Supplements. Platelet Rich Plasma Treatments. Stem Cell Therapies.
You can spend your FSA/HSA money on medical expenses for your spouse, children or any other qualifying dependent you claim on your taxes. If you have grown children on your health insurance plan but don’t claim them as dependents, you can still spend FSA/HSA money on their medical expenses if they will be 26 at the end of the current plan year, usually Dec. 31.