Are Prescription Glasses Covered by FSA?

Flexible Spending Accounts (FSAs) offer a financial tool for managing healthcare costs. These employer-sponsored accounts allow individuals to set aside pre-tax money from their paycheck, creating a dedicated fund for qualified medical expenses. Using an FSA reduces taxable income, which can lead to notable savings on out-of-pocket healthcare costs. Many common healthcare needs, including vision-related expenses, can be covered through an FSA.

Understanding FSA Vision Eligibility

A Flexible Spending Account uses funds for “qualified medical expenses” as defined by the Internal Revenue Service (IRS). This means the expense must primarily be for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any body structure or function. Vision care generally falls within this definition, making many eye-related products and services eligible for FSA coverage. Eligibility rests on the medical necessity of the item or service, rather than a cosmetic purpose. IRS guidance ensures expenses like prescription vision correction are recognized as legitimate medical costs.

Eligible Vision Expenses

Many vision-related expenses qualify for FSA coverage. These include:
Prescription eyeglasses, including frames and lenses.
Prescription contact lenses and necessary solutions and cleaning supplies.
Eye exams, essential for diagnosing and monitoring eye health.
Vision correction surgeries, such as LASIK and PRK, which correct refractive errors.
Prescription sunglasses with corrective lenses for vision impairment.
Non-prescription reading glasses, which address presbyopia.

However, non-prescription fashion sunglasses, non-corrective colored contact lenses, or general-purpose eye drops not tied to a medical condition are not covered, as they lack a medical purpose.

Using Your FSA for Vision Costs

Using your FSA for vision expenses involves straightforward processes designed for convenience. Many FSA plans issue a dedicated debit card for direct payment at the point of sale for eligible items and services. For expenses paid out-of-pocket, individuals can submit a claim for reimbursement from their FSA administrator.

For reimbursement, detailed documentation is required, including an itemized receipt showing the service or product purchased and the date. A prescription from an eye care professional is necessary for prescription items like glasses or contact lenses to confirm medical necessity. Keeping thorough records of all vision-related purchases and services is important, as FSA administrators may request verification. The “use-it-or-lose-it” rule requires funds to be spent by the end of the plan year. Some employers offer a grace period, up to 2.5 months into the new year, or allow a limited amount, such as up to $660 for 2025, to be carried over to the next plan year.