Can You Pay for Braces With a Flexible Spending Account?

A Flexible Spending Account (FSA) is a tax-advantaged financial account offered by employers to help employees pay for out-of-pocket healthcare costs. Contributions are made through pre-tax payroll deductions, which reduces an individual’s taxable income. This pre-tax benefit can lead to significant savings on eligible medical, dental, and vision expenses.

Braces Eligibility for FSA

Orthodontic treatments, including braces, are eligible expenses for a Flexible Spending Account. This eligibility stems from the fact that braces often address medical conditions, such as correcting misaligned teeth or bite issues, rather than being purely cosmetic procedures. The Internal Revenue Service (IRS) considers expenses for the diagnosis, cure, mitigation, treatment, or prevention of disease, or for affecting any part or function of the body, as eligible medical expenses. This broad definition encompasses medically necessary orthodontic care.

Various types of braces, including traditional metal braces, ceramic braces, and clear aligners, are covered. Beyond the braces themselves, other components of orthodontic treatment such as initial exams, X-rays, impressions, adjustments, and retainers are also eligible for FSA reimbursement. The key determinant for eligibility is that the treatment is intended to correct a dental or medical condition, contributing to overall oral health, rather than solely for aesthetic enhancement.

How to Use Your FSA for Braces

You can use an FSA debit card directly at the orthodontist’s office. For expenses paid out-of-pocket, individuals can submit a claim for reimbursement to their FSA administrator. This requires providing documentation such as an itemized receipt from the orthodontist, which should include the service date, a description of the service, the dollar amount, and the provider’s name.

For multi-year orthodontic treatment plans, FSA funds can only be used for expenses incurred or paid within the current plan year. If a payment plan is in place, only the installments due and paid within your FSA plan year can be reimbursed from that year’s funds. Some FSA administrators may require a copy of the orthodontic contract with the first claim, detailing the payment schedule. Proper substantiation is required for all FSA claims.

Key Considerations for Braces and FSA

When using an FSA for orthodontic treatment, confirm that the orthodontic treatment is medically necessary rather than purely cosmetic. Only treatments addressing a dental or medical condition are eligible for FSA reimbursement. For example, correcting a misaligned bite or preventing future dental problems would qualify, while solely aesthetic adjustments would not.

Orthodontic payment plans require careful management with FSA funds. Payments are reimbursed based on when the expense is incurred or paid, not when the treatment begins or is fully completed. This means that for a multi-year plan, funds from each year’s FSA contribution are used to cover payments made in that specific plan year. FSA funds can be used for eligible dependents, including children, and in some cases, adult dependents.

FSA contributions have annual limits; for 2025, employees can contribute up to $3,300. This amount may not cover the entire cost of extensive orthodontic treatment in a single year, necessitating careful financial planning across multiple plan years. Many FSA plans operate under a “use-it-or-lose-it” rule, though employers may offer a grace period of up to 2.5 months or allow a limited rollover amount, which is $660 for 2025. Individuals should check their specific plan details to understand these provisions and maximize the use of their funds.