When it comes to health necessities, it always helps if you can save a few dollars\u2014especially since health-related products can be very expensive. In addition to health insurance, you may also have something called an FSA\u2014or Flexible Spending Account or Arrangement\u2014through your employer, and this can be a great way to save some money.<\/p>\n\n\n\n
If you\u2019re wondering how to spend your remaining FSA money before the year ends, as it turns out, there are actually quite a few products that can aid in sleep that you can use your funds on. Read on to discover what an FSA is exactly and things to buy with FSA funds.<\/p>\n\n\n\n
An FSA is a \u201chandy-dandy account\u201d permitted by the IRS that allows people to put in an amount that can be spent, tax-free and before taxes, on medical-related expenses, explains Caitlynn Eldridge<\/a>, CPA, founder and owner of Eldridge CPA LLC. This year, adjusted for inflation, the maximum amount of money that can be put into an FSA is $3,050.<\/p>\n\n\n\n So, why do people have<\/em> to use up the FSA money before the year ends? Simply put, \u201cbecause it\u2019s what the rules say,\u201d notes Eldridge. <\/p>\n\n\n\n \u201cCongress drafts the laws, and the IRS enforces them\u2014and that’s just what was decided,\u201d she says, adding that an FSA must reset yearly. <\/p>\n\n\n\n According to Eldridge, one caveat is a \u201cgrace period\u201d that your employer may allow if it\u2019s written into the plan. You would have two and a half months following the end of the year to use up what\u2019s left.<\/p>\n\n\n\n \u201cAn FSA is very akin to a bank account in which your employer takes money from your paycheck and puts money into,\u201d explains Eldridge. \u201cThe employer fully funds it at the beginning of the year based on the amount you told them to put in during open enrollment, and then your paychecks are reduced equally throughout the year by the amount you elected to put in.” <\/p>\n\n\n\n She adds that you then can use a debit-like card to pull money out or you\u2019ll submit receipts to the FSA administrator for reimbursement. “By putting money into an FSA, you are reducing your taxable income,\u201d she says. <\/p>\n\n\n\n There are a few general types of products that are FSA eligible and can be used to improve sleep. Traditionally, these products can include:<\/p>\n\n\n\n Eldridge also shares a few more categories to consider:<\/p>\n\n\n\n \u201cA sleep study<\/a> if prescribed by a doctor but not fully funded by insurance could be paid for with FSA funds, which could help determine if there’s a sleep problem,” says Eldridge. <\/p>\n\n\n\n Since you need this machine<\/a> if you\u2019ve been diagnosed with severe sleep apnea<\/a>\u2014and you\u2019ll need to maintain it to keep it running at its best\u2014FSA money can contribute toward these costs.<\/p>\n\n\n\n These types of holistic visits \u201ccould help improve sleep and would be covered by an FSA,\u201d says Eldridge. <\/p>\n\n\n\n These types of eye masks help provide heating and cooling relief to ease pain and tension and minimize puffiness. <\/p>\n\n\n\n \u201cIf you are ever unsure if something qualifies, speaking with a tax advisor or the plan administrator is recommended,\u201d says Eldridge. <\/p>\n\n\n\n She adds that unfortunately while mattresses<\/a> and pillows<\/a> aren’t FSA eligible, by utilizing your FSA tax savings, you’ll likely have more money to buy a quality mattress.<\/p>\n\n\n\n You can also always check the FSA Store<\/a> to see if products you\u2019d like to purchase are eligible.<\/p>\n\n\n\n The bottom on using an FSA: \u201cUtilizing it is one of the best tax savings available, and often an easy decision for taxpayers,” says Eldridge. “If you’ll be spending money on co-pays, prescriptions, over-the-counter drugs, eyeglasses, and dentist appointments\u2014it’s worth utilizing an FSA.\u201d<\/p>\n\n\n\n Wondering what to buy with FSA money? Eldridge says typically, it’s anything that\u2019s prescribed by a doctor or dentist along with everyday medical supplies and over-the-counter medicines. \u201cPublication 502<\/a> [from the IRS] is a great resource for those who want more detail,\u201d Eldridge says.<\/p>\n\n\n\n Pondering how to spend your FSA money last minute? Eldridge recommends seeing if you can fill prescriptions ahead of time for the next quarter, scheduling a year-end physical and related tests, and prepaying for appointments at the chiropractor or acupuncturist if they offer a program. \u201cStocking up on over-the-counter medications that you could use in the next year is also a way to spend the FSA,\u201d she says. \u201cEven stocking up on sunscreen could help!\u201d<\/p>\n\n\n\nHow does an FSA work?<\/h2>\n\n\n\n
What to buy with FSA money to improve your sleep<\/h2>\n\n\n\n
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Sleep studies<\/h3>\n\n\n\n
CPAP machines and maintenance costs<\/h3>\n\n\n\n
Acupuncture and chiropractic visits<\/h3>\n\n\n\n
Therapy eye masks<\/h3>\n\n\n\n
Not sure if a sleep product is eligible? <\/h3>\n\n\n\n
FAQs<\/h2>\n\n\n\n
What can I purchase with an FSA?<\/h3>\n\n\n\n
How do I spend my FSA money last minute?<\/h3>\n\n\n\n