You can actually use the money you've contributed to your FSA to buy certain healthcare products that the IRS has deemed eligible.
- An estimated $400 million in FSA funds was forfeited last year.
- You can actually use the money you've contributed to your FSA to buy certain healthcare products the IRS has deemed eligible.
- However, there are certain things like bug spray and tampons that you can't buy pre-tax.
For 2018 employees were allowed to put up to $2,650 in their FSA account, according to the IRS. These funds are use-it-or-lose-it. The IRS has allowed some employers to give their employees the chance to participate in a carryover option, which allows the rollover of up to $500, or a grace period option, which gives users two and a half months to finish up their dollars — but not both.
If you're not at a company that lets you push the deadline, there's still time to use up what's left in your account on things you actually use and will probably buy anyway. Think bandages, sunscreen, and baby wipes. You can even use it to pay for your prescriptions. The IRS decides which items are eligible and which ones aren't based on what they're each used for.
Rather than joining millions of Americans who forfeit an estimated $400 million collectively, use your pre-tax money to stock up on things you need for the coming year. Here are 50 things under $40 the IRS says you can buy, and five surprising things you can't.
Lip balm with SPF $2.99 No prescription needed
Corn removers $3.79 Prescription required
Sunscreen for babies $4.29 No prescription needed
Contact lens solution $4.29 No prescription needed
Visine $4.89 Prescription required
Disposable nursing pads $4.99 No prescription needed
Icy Hot $5.99 Prescription required
Neosporin $6.49 Prescription required
Decongestant spray $6.49 Prescription required
Aquaphor $6.57 Prescription required
Children's Benadryl $6.65 Prescription required
Cold sore treatment $6.99 Prescription required
Band-Aids $6.99 No prescription needed
Facial cleanser $6.99 Prescription required
Soothing gel with aloe $7.49 Prescription required
Earwax removal kit $7.49 Prescription required
Antifungal spray $7.89 Prescription required
wheelchair seatbelt $7.99 No prescription needed
Denture cleaner $7.99 No prescription needed
Heat wraps $8.99 No prescription needed
Relaxation Mask $8.99 No prescription needed
Motion sickness band $8.99 No prescription needed
Page magnifier $8.99 No prescription needed
Gold Bond body powder $9.47 Prescription required
After Bite $9.51 Prescription required
Lice killing shampoo $9.99 Prescription required
Hearing Aid Batteries $9.99 No prescription needed
Foot Roller $9.99 No prescription needed
Midol $9.99 Prescription required
Reading glasses $9.99 No prescription needed
Yeast symptom relief $10.05 Prescription required
Healing skin lotion $10.59 Prescription required
Sleep aids $10.99 Prescription required
Sunscreen $11.49 No prescription needed
Gummy prenatal vitamins $12.99 No prescription needed
Biofreeze Spray $13.99 Prescription required
Laxatives $14.99 Prescription required
Non-latex Condoms $15.49 No prescription needed
Bedtime underwear $15.99 No prescription needed
Foot tissue relaxer $15.99 No prescription needed
Snotsucking kit $19.99 No prescription needed
Nicotine patch $24.67 Prescription required
Children's Claritin $24.99 Prescription required
Screening test for breast milk $24.99 No prescription needed
Light therapy acne treatment $29 No prescription needed
Acupressure mat $29.99 No prescription needed
Neck support pillow $32.99 No prescription needed
Pee-proof underwear $37 No prescription needed
Compression socks $37.99 No prescription needed
Light therapy acne treatment mask $39.99 No prescription needed
You can find some sunscreens with insect repellent agents in them, but you can't use your FSA dollars to buy bug spray by itself. It's currently considered a general health product, but with the rise of isect borne illnesses like the Zika virus, it may become eligible in the future.
Source: FSA Store
Multivitamins and other dietary supplements like them are considered general health items as well since they "do not directly treat a legitimate medical condition."
Source: FSA Store
Toothbrushes, toothpaste, and floss are all general health products. While you can use FSA dollars for orthodontic or denture care, you can't use them for your everyday dental hygiene needs.
Source: FSA Store
Tampons are not currently FSA eligible because they're not considered necessary by the IRS. The debate on menstrual equity is in full swing and has been heavily debated across different levels of policymakers — The Fund Essential Menstruation Products Act was introduced in 2016 and may help speed up the process one day, but we're not there yet.
Source: FSA Store
Different health monitors — blood pressure devices and stethoscopes — are eligible for FSA spending, but your wearable monitor is not. Although your Fitbit or other tracking tech can be used to monitor similar metrics, the IRS hasn't yet given it the stamp of approval — but that's not to say it won't get there eventually.
Source: FSA Store