Can I Use My FSA for LASIK Eye Surgery?

Flexible Spending Accounts (FSAs) allow you to set aside pre-tax funds for eligible medical expenses. Many individuals wonder if LASIK eye surgery qualifies for reimbursement. LASIK is generally considered an eligible medical expense, meaning you can use your FSA funds to cover the costs.

Qualifying LASIK Expenses

The Internal Revenue Service (IRS) defines a qualified medical expense as amounts paid for the “diagnosis, cure, mitigation, treatment, or prevention of disease, or for the purpose of affecting any structure or function of the body.” LASIK eye surgery falls under this definition because its primary purpose is to correct defective vision, which is considered a medical condition. This distinguishes it from purely cosmetic procedures.

Specific costs associated with LASIK that qualify for FSA reimbursement include the surgical procedure, pre-operative examinations, and post-operative care. For guidance on eligible medical expenses, refer to IRS Publication 502.

FSA Reimbursement Process for LASIK

Using your FSA funds for LASIK involves a straightforward process, whether through direct payment or reimbursement. Many FSA plans provide a debit card, which can be used at the time of service to pay for eligible expenses directly from your account. Retain all itemized receipts, as the IRS requires substantiation for all FSA transactions, even those made with a debit card.

If you pay for LASIK out-of-pocket, submit a claim to your FSA administrator for reimbursement. This involves completing a claim form and providing supporting documentation, such as an itemized receipt from the LASIK provider detailing the service, date, and amount. An Explanation of Benefits (EOB) from your health insurance may also be required. Claims can be submitted through online portals, mobile apps, or by mail. Once approved, reimbursement occurs via direct deposit or check within a few business days to a couple of weeks.

Managing Your FSA Funds for LASIK

Managing your FSA funds is important, especially when planning for a significant expense like LASIK. FSAs operate under a “use-it-or-lose-it” rule, meaning any unspent funds are forfeited at the end of the plan year. This requires careful planning to ensure funds are utilized before the deadline.

Many FSA plans offer provisions to mitigate the “use-it-or-lose-it” rule, such as a grace period or a carryover option. A grace period extends the time to incur new expenses for up to 2.5 months after the plan year ends. Alternatively, a carryover option allows a portion of unused funds to roll over into the next plan year; for example, up to $640 for the 2024 plan year.

Employers offer either a grace period or a carryover, but not both, and some plans may offer neither. Consult your specific FSA plan documents to understand the rules and deadlines, ensuring you can time your LASIK procedure to maximize the benefit of your pre-tax contributions. The annual contribution limit for FSAs is $3,200 for 2024.