Can an FSA Be Used for Dental Expenses?

A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows individuals to set aside pre-tax money from their paycheck to pay for eligible out-of-pocket healthcare expenses. This arrangement reduces taxable income, leading to tax savings on the funds contributed. FSAs are designed to help manage various medical costs not typically covered by health insurance, including a range of dental services and products.

Eligible Dental Expenses

Many dental services and products are eligible for FSA reimbursement, provided they are for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. The underlying principle for eligibility is that the expense must be primarily for medical care, as outlined by IRS guidelines. This broad definition encompasses most procedures aimed at maintaining or restoring oral health.

Eligible dental expenses include:

• Routine preventative care, such as dental cleanings, examinations, and X-rays
• Restorative procedures like fillings, crowns, bridges, and dentures
• Treatments for conditions such as gingivitis, temporomandibular joint syndrome, and gum recession
• Major procedures like tooth extractions, root canals, and periodontal treatments
• Orthodontic treatments, including braces, retainers, and clear aligners, if medically recommended
• Certain prescription medications for dental conditions
• Fluoride treatments applied by a provider
• Over-the-counter dental products if prescribed for a specific medical condition

Non-Qualifying Dental Expenses

While FSAs cover a wide array of dental care, certain services and products are generally not eligible for reimbursement. Cosmetic procedures that are not medically necessary, such as teeth whitening, veneers, or bonding performed purely for aesthetic reasons, do not qualify. General oral hygiene products, like regular toothpaste, non-medicated floss, and standard mouthwash, are typically not covered, as these items are considered beneficial to general health rather than specific medical treatments.

Using Your FSA for Dental Services

Using FSA funds for dental services involves understanding the payment methods and administrative requirements. Many FSA plans provide a dedicated debit card, which can be used directly at the dental office at the time of service. Alternatively, individuals can pay out-of-pocket for eligible services and then submit a claim for reimbursement to their FSA administrator. This typically involves completing a claim form and providing supporting documentation.

Proper documentation is important for all FSA transactions. Itemized receipts from the dental provider, along with any Explanation of Benefits (EOBs) from dental insurance, should be kept. These documents are necessary to substantiate that the expense was eligible, even when using an FSA debit card, as administrators may request them for verification. The receipt should clearly show the date of service, the type of procedure, the amount paid, and the provider’s name.

FSAs operate under a “use-it-or-lose-it” rule, which means funds generally must be used within the plan year or by a specific deadline. However, employers can offer options to mitigate this, such as a grace period, which allows an additional 2.5 months to incur expenses after the plan year ends. Another option is a carryover, permitting a limited amount of unused funds, such as up to $660 for 2025, to roll over into the next plan year. Employers typically offer one of these options, but not both.

The full annual election amount is generally available on the first day of the plan year, regardless of how much has been contributed through payroll deductions. It is advisable to consult specific FSA plan documents to understand the applicable rules, including any grace periods or rollover provisions.