Can You Buy Condoms With a Flexible Spending Account?

Flexible Spending Accounts (FSAs) offer a way for individuals to manage healthcare costs. These employer-sponsored benefits allow participants to contribute pre-tax dollars from their salary into a dedicated account. The funds within an FSA can then be used to pay for a wide range of qualified medical expenses, effectively reducing an individual’s taxable income.

Eligibility of Condoms for FSA

Condoms, both male and female, are eligible medical expenses for reimbursement through a Flexible Spending Account. The Internal Revenue Service (IRS) clarifies that amounts paid for condoms are treated as expenses for medical care under Internal Revenue Code Section 213(d). They are categorized as over-the-counter (OTC) medical supplies for family planning and disease prevention.

For OTC condoms, a doctor’s prescription is not required for FSA eligibility. This aligns with broader IRS guidance expanding eligible OTC items. This inclusion reflects their role in disease prevention and family planning, falling under the IRS definition of medical care expenses.

Using Your FSA for Purchases

When utilizing an FSA for eligible purchases like condoms, there are two methods: using an FSA debit card or seeking reimbursement for out-of-pocket payments. Many FSA providers issue a specialized debit card linked directly to the account. This card functions like a regular debit card, allowing direct payment at the point of purchase for eligible items or services.

Even when using an FSA debit card, retain all itemized receipts. The IRS requires substantiation for all FSA purchases. Administrators may request detailed documentation showing the item, date, and amount to verify eligibility.

Alternatively, if an FSA debit card is not used or accepted, individuals can pay for eligible expenses out-of-pocket and then submit a claim for reimbursement. This process involves completing a claim form and attaching itemized receipts or an Explanation of Benefits (EOB) detailing the expense. Reimbursement claims are then processed by the FSA administrator.

General FSA Account Rules

Flexible Spending Accounts are employer-sponsored benefits funded by employee pre-tax contributions, which are not subject to federal income, Social Security, or Medicare taxes. FSAs are known for the “use-it-or-lose-it” rule, meaning any unused funds at the end of the plan year were historically forfeited to the employer. However, many plans now offer exceptions to this rule.

Employers may allow a grace period, typically up to 2.5 months after the plan year ends, to incur new expenses, or they may permit a carryover of a limited amount of unused funds into the next plan year. For the 2025 plan year, the maximum carryover amount is $660, an increase from $640 in 2024. The annual contribution limit for a healthcare FSA in 2025 is $3,300, up from $3,200 in 2024. Individuals should carefully estimate their anticipated healthcare expenses to maximize FSA benefits and minimize forfeiture risk.