Surprising Ways to Use Up a Flexible Spending Account (FSA) so You don’t Lose It!

Elitone, our FDA-cleared incontinence treatment is FSA eligible.

There’s one basic rule when it comes to a flexible spending account (FSA): if you don’t use it, you’ll lose it. So as the year-end fundraisers rage and various causes compete for your donations, don’t miss your chance to use all your flexible spending account dollars. Here are some common questions to help brush up on how this account works, plus some unexpected ways to spend the funds.

What is a flexible spending account?

Your employer may offer an FSA (also called a flexible spending arrangement) as part of a benefits package. This account usually is funded automatically from your paycheck and can be used to pay for certain approved health-related expenses. FSA dollars are deposited before taxes, pre-tax, reducing your taxable income. If you know you are going to spend money on health expenses, then this essentially saves you money.

How does a flexible spending account work?

At the beginning of each year, you determine how much you want to contribute to your FSA. Some employers may also contribute to FSAs, but the total annual amount cannot exceed the allowable limit. Each year, the federal government determines the maximum annual contribution allowed for an FSA.

To make a transaction, many FSAs supply you with a debit card to use for purchases and co-pays. Otherwise you can submit the receipts to your employer for reimbursement from your FSA. But avoid the hassle and choose the option that makes it easy (see below).

One of the perks of an FSA is that the annual amount is available immediately for approved costs. This means you don’t have to accrue the amount each month; however, if you change companies mid-year and have used all of your FSA funds, you may owe your former employer the difference. Similarly, if you leave your company, you forfeit any unused funds in the FSA because the employer owns the account.

How is a flexible spending account (FSA) different than health savings account (HSA)?

Both of these accounts are pre-tax savings accounts that are ear-marked for medical expenses as defined by the IRS. There are a number of differences, but the largest one is that FSA is usually controlled by an employer and the HSA is controlled by the individual and usually can roll over at the end of the year. HSA plans have grown in popularity as health insurance costs have skyrocketed, more employers and individuals gravitated toward high-deductible health plans (HDHP). In 2024, HDHP meant a plan with a deductible of at least 1600 and 3200 dollars for individuals or families respectively.

Keep in mind there’s a contribution limit.

In 2023, people with individual health insurance can save up to USD 3850 to an HSA, and people with family coverage can save up to USD 7750 ($4150 in 2024, and $8300 for family coverage limits).

5 Uncommon ways to use your Flexible Spending Account. If you need to use up your dollars before year’s end, here are some ideas:

Incontinence products. For 1 out of 3 women, incontinence is a problem. And over time, the costs of pads and related expenses can add up. Even though you may use your FSA money to purchase incontinence pads, a smarter investment would be to use those same funds to purchase an FDA-cleared Kegel exerciser, like Elitone to treat incontinence. This device is worn externally and tones your pelvic floor muscles to decrease or even eliminate bladder leaks, plus you do not need a prescription. See below* – Elitone has a new EASY checkout solution.

Prescription sunglasses. Many insurance plans cover an eye exam every couple of years, but when it comes to frames and lenses, you’re often on your own. Not only does an FSA cover prescription eye glasses and contact lenses, but also prescription sunglasses, contact lens supplies, and over-the-counter glasses, better known as “readers.”

Pregnancy tests and breast pumps. Some things you just need to know right now. And determining whether or not you’re pregnant is one of those important moments. Pregnancy tests and fertility products are both allowable FSA purchases. And when you’ve finally reached the milestone of being a new mom, that electric breast pump you’ve been eying is also eligible.

Acupuncture. At first glance, this traditional Chinese treatment may seem outside the scope of allowable costs. However, acupuncture is an approved medical expense, even without a prescription. Alternative treatments often are not allowed under FSA rules, so it’s best to double-check with your provider.

Sunscreen. It used to be that only sunscreen with an SPF of 15 or higher was eligible under the FSA guidelines. But the CARES Act of 2020 during the COVID pandemic added considerably to the list of allowable products. The resulting list includes all SPF levels.

Other FSA-eligible items. Acne medication, air purifiers, lodging for medical care, tampons, and weight loss programs.

Just as you would check on an insurance policy, always confirm ahead of time any irregular purchases you plan to make with your FSA funds. Sometimes you will need receipts, reimbursement submissions, and justifications.

* NEW!! With Elitone, We’ve teamed up with Sika Health to help you redeem your FSA/HSA funds for eligible Elitone purchases. Simply shop as normal then choose the Sika FSA-verified payment method at checkout. No receipts, no reimbursements, no hassle. They did the hard work for you!

There are so many practical ways to use your hard-earned dollars, so don’t let them go to waste!

USE MY FSA/HSA FOR MY PELVIC FLOOR HEALTH