Can I Use My FSA for Glasses Frames?
Maximize your Flexible Spending Account for vision care. Understand eligible expenses and the simple process to utilize your pre-tax funds for eye health.
Flexible Spending Accounts (FSAs) allow individuals to pay for eligible healthcare expenses with pre-tax dollars. Participants set aside a portion of their income, reducing their taxable earnings. This helps budget for anticipated medical, dental, and vision costs.
Understanding Flexible Spending Accounts
A Flexible Spending Account is typically offered by employers, allowing employees to contribute funds directly from their paycheck before taxes are withheld. This pre-tax funding reduces an individual’s taxable income. The full elected amount for the plan year is generally available on the first day of the plan year, even if total contributions have not yet been made.
FSAs operate under a “use-it-or-lose-it” rule, meaning that funds not spent by the end of the plan year are generally forfeited. However, employers can offer certain exceptions to this rule. These exceptions include a grace period, which allows an additional 2.5 months after the plan year ends to incur and use funds for eligible expenses. Alternatively, employers may permit a rollover of a limited amount of unused funds into the next plan year, with the Internal Revenue Service (IRS) allowing up to $660 to be carried over for plan years ending in 2025. Employers can choose to offer either a grace period or a rollover, but not both.
Eligible Vision Care Expenses
Many vision care products and services are eligible for FSA reimbursement, as they are considered medical expenses under IRS guidelines. This includes prescription glasses, encompassing both the frames and the corrective lenses. Prescription sunglasses are also eligible, providing vision correction and sun protection.
Contact lenses, along with necessary accessories such as cleaning solutions and cases, are covered expenses when prescribed for vision correction. Eye exams performed by an optometrist or ophthalmologist are eligible, as they are essential for assessing vision and overall eye health. These examinations often check for various health conditions.
Over-the-counter reading glasses are generally eligible for FSA reimbursement, even without a prescription, because they aid vision correction. Non-prescription items like regular sunglasses, non-corrective blue-light glasses, or cosmetic contact lenses are typically not eligible unless medically necessary and prescribed by a doctor. It is important to confirm eligibility with your FSA administrator, as plan specifics can vary.
Making Purchases with Your FSA
Utilizing FSA funds for eligible expenses typically involves two primary methods: using an FSA debit card or submitting claims for reimbursement. Many FSA plans provide a dedicated debit card, linked directly to your FSA balance. When using this card, it is generally advised to select “credit” at the point of sale, even though it operates without a PIN.
For many transactions, especially at healthcare providers or merchants that use an Inventory Information Approval System (IIAS), the eligibility of the purchase is automatically verified at checkout. If an item or service is not automatically substantiated, or if you do not use your FSA debit card, you will need to submit a claim for reimbursement. This process requires detailed documentation, such as itemized receipts or an Explanation of Benefits (EOB). These documents must clearly show the date of service, the provider’s name, a description of the service or item, the patient’s name, and the cost. Maintaining accurate records of all eligible expenses is important for successful reimbursement.