Can I Use FSA to Buy Glasses? What Else Is Covered?
Learn how to effectively use your Flexible Spending Account (FSA) for vision care, covering eligible expenses and important rules for maximum savings.
Many employers offer Flexible Spending Accounts (FSAs) as a valuable benefit to help employees manage healthcare costs. These accounts provide a way to save money on various medical, dental, and vision expenses. FSAs are indeed a suitable option for covering many vision-related expenses, including the purchase of glasses.
Understanding Flexible Spending Accounts for Vision Care
A Flexible Spending Account allows individuals to set aside pre-tax money from their paycheck to pay for eligible out-of-pocket healthcare expenses. This pre-tax contribution means that the money you put into an FSA is not subject to federal income tax, Social Security tax, or Medicare tax, effectively reducing your taxable income. The primary purpose of an FSA is to help employees cover qualified medical, dental, and vision costs not reimbursed by their health insurance. Funds contributed to an FSA are typically available at the beginning of the plan year, even before the money has been fully deducted from payroll.
What Vision Expenses Qualify
Flexible Spending Accounts commonly cover a wide array of vision-related expenses. This includes prescription eyeglasses, encompassing both frames and lenses. Contact lenses, along with necessary solutions and cleaning supplies, also qualify for reimbursement. Routine eye exams are covered expenses, as are prescription sunglasses, which serve a medical purpose by correcting vision while providing sun protection.
However, cosmetic procedures, like LASIK surgery, are generally covered if medically necessary, but elective cosmetic procedures without a medical need are typically not. Non-prescription items, such as regular sunglasses or colored contact lenses without a corrective prescription, are usually not eligible.
How to Use Your FSA Funds
Many FSA plans issue a debit card specifically for purchases at the point of sale. If a debit card is not provided or accepted, you will typically pay for the expense out-of-pocket and then submit a claim for reimbursement. To submit a reimbursement claim, you will need to provide documentation, such as detailed receipts and sometimes a prescription from your eye care professional. Maintaining thorough records of all your purchases is important for substantiation purposes, as your plan administrator may require them to verify eligibility. The claim process usually involves filling out a form provided by your FSA administrator and attaching the required documentation.
Key FSA Rules to Remember
A primary rule is “use-it-or-lose-it,” meaning that funds generally must be spent by the end of the plan year or they are forfeited. To mitigate this, many employers offer either a grace period or a rollover option, but typically not both. A grace period extends the time to incur new expenses, usually by up to two months and 15 days, immediately following the end of the plan year.
Alternatively, some plans allow a limited amount of unused funds to be rolled over into the next plan year. For instance, for plan years beginning in 2025, the maximum carryover amount is $660. This carryover does not affect the annual contribution limit, which for 2025 is $3,300 per employee. It is important to confirm with your employer which of these options, if any, your specific FSA plan offers to avoid losing your hard-earned funds.