Are Ovulation Tests an FSA Eligible Expense?
Are ovulation tests FSA eligible? Learn how to use your Flexible Spending Account for these health expenses, from eligibility to reimbursement.
Flexible Spending Accounts (FSAs) offer a tax-advantaged way to pay for healthcare expenses throughout the year. Many individuals utilize these accounts to manage out-of-pocket medical costs. A common inquiry among those navigating their healthcare spending involves the eligibility of specific items, such as ovulation tests, for FSA reimbursement.
Understanding FSA Eligibility
Expenses are considered eligible for FSA reimbursement if they meet the Internal Revenue Service (IRS) definition of “qualified medical expenses.” This definition encompasses costs associated with the diagnosis, cure, mitigation, treatment, or prevention of disease, and expenses for affecting any structure or function of the body. Items or services merely beneficial to general health, such as vitamins not prescribed for a specific medical condition, do not qualify. The IRS provides guidelines on what constitutes a medical expense for tax purposes.
Eligibility of Ovulation Tests
Ovulation tests are indeed qualified medical expenses eligible for FSA reimbursement. They qualify under the IRS definition as diagnostic devices used to affect a function of the body, specifically for reproductive health and family planning. This eligibility extends to various home fertility tests, including pregnancy tests.
FSA Reimbursement Process
Utilizing FSA funds for eligible expenses like ovulation tests can be done in two ways. Many FSA plans provide a dedicated debit card. This card can be used directly at participating merchants, such as pharmacies or grocery stores. When using the FSA debit card, select “credit” at checkout.
Alternatively, individuals can pay for eligible expenses out-of-pocket and then submit a claim for reimbursement. This process typically involves completing a claim form provided by the FSA plan administrator. Forms can often be submitted online, through a mobile application, via fax, or by mail. Reimbursement usually occurs through direct deposit into a personal bank account or by check, with processing times varying by administrator.
Record Keeping for FSA
Maintaining accurate records is important for managing an FSA. These records are necessary for substantiating claims and for potential audits by the plan administrator or the IRS. Key documentation includes itemized receipts that show the date of service or purchase, a description of the item, the dollar amount, and the name of the provider or store. Non-itemized receipts or credit card statements alone are not sufficient for substantiation. Retain all relevant documentation for at least three years following the close of the plan year.