Can an FSA Be Used for Eyeglasses and Contacts?

Flexible Spending Accounts (FSAs) offer a valuable way to manage healthcare costs. An FSA is an employer-sponsored benefit account that allows individuals to set aside pre-tax money from their paycheck to pay for eligible medical expenses. This reduces taxable income, providing a financial advantage. The funds contributed to an FSA are typically available for use at the beginning of the plan year.

Eligible Eyewear Expenses

Flexible Spending Accounts can cover vision-related costs, provided they meet Internal Revenue Service (IRS) guidelines for medical care. An expense is eligible if it is for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any structure or function of the body. This includes items and services necessary to correct vision impairments.

Eligible expenses include:
Prescription eyeglasses (frames and lenses)
Prescription contact lenses, solution, cases, and enzyme cleaner
Medically necessary reading glasses, if prescribed by an eye care professional
Prescription sunglasses that provide corrective vision
Eye exams for vision correction or medical diagnosis

Certain eyewear-related items are not eligible for FSA reimbursement. This includes non-prescription fashion sunglasses, non-prescription blue light blocking glasses, or eye care products purchased solely for cosmetic purposes. Expenses for warranties or insurance on prescription eyeglasses and sunglasses are not eligible. To ensure eligibility, a prescription confirming medical necessity is required for items like colored contact lenses.

Using Your FSA for Purchases

Utilizing your Flexible Spending Account for eyewear expenses involves two main methods: using an FSA debit card or submitting claims for reimbursement.

Many FSA plans issue a debit card linked directly to the account, which functions much like a standard debit card. This card can be used for direct payment at the point of sale, such as at an optometrist’s office, optical shop, or through online retailers that accept FSA cards. Some merchants may require additional verification or a prescription to confirm the eligibility of the purchase.

If an FSA debit card is not used, or if a purchase is made out-of-pocket, individuals can seek reimbursement by submitting a claim to their FSA administrator. This process requires detailed documentation to substantiate the expense, as mandated by IRS rules. Required documentation typically includes an itemized receipt that clearly shows the date of service or purchase, the name of the provider or merchant, a description of the item or service purchased, and the dollar amount.

For prescription eyewear or services, a copy of the prescription from an eye care professional serves as proof of medical necessity. Credit card receipts or canceled checks alone are not sufficient documentation for reimbursement, as they often lack the necessary itemized detail. Maintaining organized records of all eyewear-related purchases and associated prescriptions is important for reimbursement and compliance with FSA regulations.