Can You Use FSA for Glasses and Other Vision Care?

A Flexible Spending Account (FSA) is an employer-sponsored benefit that allows individuals to set aside pre-tax money from their paycheck to pay for eligible out-of-pocket healthcare costs. This arrangement reduces an individual’s taxable income, offering potential tax savings on funds used for medical expenses.

Eligible Vision Care Expenses

Flexible Spending Accounts can be a valuable tool for covering a wide array of vision-related expenses. The Internal Revenue Service (IRS) defines eligible medical expenses broadly, and for vision care, this encompasses many common and specialized needs.

Prescription eyeglasses, including both frames and lenses, are fully eligible for FSA reimbursement. This also extends to prescription sunglasses. Contact lenses, along with necessary solutions and cases for their maintenance, also qualify as eligible expenses. Individuals can use their FSA funds for routine eye examinations.

Beyond basic eyewear, more involved vision correction procedures like LASIK surgery are typically eligible if deemed medically necessary by an ophthalmologist. This means the procedure must be performed to correct vision problems such as nearsightedness, farsightedness, or astigmatism, not purely for cosmetic reasons. However, items like non-prescription sunglasses, cosmetic contact lenses (unless prescribed for a medical condition), and extended warranties for eyewear are not eligible.

How to Use Your FSA Funds

Accessing funds from your Flexible Spending Account for vision care expenses can be done through two primary methods: using an FSA debit card or submitting claims for reimbursement. Many FSA plans provide a dedicated debit card, which functions similarly to a regular bank debit card. This card is linked directly to your FSA balance and can be used at the point of purchase for eligible medical expenses. When swiping the FSA debit card, the system automatically checks if the purchase is for an eligible item. If the item or service qualifies, the transaction is approved, and funds are immediately deducted from your account, often eliminating the need for further paperwork.

Alternatively, if you pay for an eligible vision expense out-of-pocket, you can seek reimbursement from your FSA. This process involves submitting a claim to your FSA administrator. You will need to provide detailed documentation, such as an itemized receipt or an Explanation of Benefits (EOB), clearly showing the date of service, description of the item or service, provider name, and the amount paid. After reviewing the documentation, the administrator will process your claim and reimburse you.

Key Considerations for Your FSA Vision Benefits

Understanding the administrative aspects of your FSA is important for maximizing its benefits and avoiding forfeiture of funds. A significant rule governing FSAs is the “use-it-or-lose-it” provision. This generally requires that funds elected for a plan year must be used by the end of that year. If funds remain unspent, they are typically forfeited back to the employer.

However, employers often offer options to mitigate this rule, such as a grace period or a carryover provision. A grace period allows an additional period, up to two and a half months after the plan year ends, to incur new eligible expenses using the previous year’s funds. Alternatively, some plans permit a carryover of a limited amount of unused funds into the next plan year; for example, up to $660 for plan years ending in 2025. Employers can offer either a grace period or a carryover, but not both, so it is important to verify which option your specific plan provides.

Maintaining meticulous records and receipts for all FSA purchases is important. Even when using an FSA debit card, administrators may request substantiation to verify the eligibility of a purchase. Receipts should include the date of service, provider’s name, description of the service or item purchased, and the dollar amount. These records are essential for proving compliance with IRS guidelines. Using an FSA can also complement vision insurance by allowing you to cover co-pays, deductibles, or costs exceeding your insurance benefits with pre-tax dollars.