Can You Use an FSA for Eyeglasses and Other Eyecare?

Flexible Spending Accounts (FSAs) are employer-sponsored benefits designed to assist individuals with out-of-pocket healthcare expenses. These accounts allow employees to contribute pre-tax dollars from their salary, which can then be used for a variety of qualified medical, dental, and vision costs. A primary benefit of an FSA is the reduction of taxable income, as contributions are not subject to federal income tax or employment taxes. This arrangement provides a valuable mechanism for managing healthcare expenditures while also offering a tax advantage.

Understanding Eligible Eyecare Costs

Many eyecare expenses are eligible for FSA reimbursement if medically necessary. This includes prescription eyeglasses (frames and lenses) and prescription sunglasses. Prescription contact lenses, cleaning solutions, and storage cases are also eligible. Funds also cover comprehensive eye exams.

Corrective vision surgeries like LASIK, PRK, and LASEK qualify for FSA reimbursement. Other qualifying items include medically necessary eye drops, eyeglass repair kits, cleaning supplies for eyewear, prescription safety goggles, and over-the-counter reading glasses.

Not all eyecare purchases are eligible. Cosmetic items like non-prescription sunglasses, costume contact lenses, or non-corrective blue-light blocking glasses do not qualify. Extended warranties for eyewear or vision plan premiums are also excluded. IRS guidelines state expenses must be primarily for alleviating or preventing a physical or mental illness or defect, not merely for general health.

Steps for Using Your FSA

Using your FSA for eyecare expenses involves specific procedures. Many FSA plans provide a dedicated debit card, linked directly to your FSA balance. This card allows direct payment for eligible expenses, offering immediate access to pre-tax funds. When using the card, select “credit” at checkout.

Even with a debit card, retain all itemized receipts and documentation for every FSA purchase. Plan administrators may request this documentation, known as substantiation, to verify eligibility. If substantiation is not provided, the expense could be denied, requiring repayment. Record-keeping is also important for tax records and potential audits.

For expenses not paid with an FSA debit card, submit a reimbursement claim to your FSA administrator. Required documentation includes an itemized statement from the provider, detailing the date, provider’s name, service or item description, and amount charged. If insurance was involved, an Explanation of Benefits (EOB) form from your insurer is necessary to show the amount owed after insurance payments. Claims can be submitted through an online portal, by mail, or fax; processing times range from a few business days to over a week.

The “use-it-or-lose-it” rule means unspent funds remaining at the end of the plan year are forfeited. Many employers offer provisions to mitigate this.

Some plans include a grace period, up to 2.5 months after the plan year ends, allowing additional time to incur new eligible expenses. Alternatively, some employers offer a carryover option, permitting a limited amount of unused funds (e.g., up to $660 for 2025) to roll over into the next plan year. Employers generally offer either a grace period or a carryover, but not both. Confirm specific rules and deadlines with your FSA plan administrator.