Does FSA Cover Eyeglasses & Other Vision Expenses?

A Flexible Spending Account (FSA) allows individuals to set aside pre-tax money for eligible healthcare expenses. This employer-sponsored benefit provides a way to reduce taxable income while planning for anticipated medical, dental, and vision costs. The primary purpose of an FSA is to offer a tax advantage, making healthcare more affordable by utilizing funds that are not subject to federal income, Social Security, or Medicare taxes.

Eyeglasses Eligibility

Prescription eyeglasses are an eligible expense for FSA reimbursement. This includes the cost of frames, prescription lenses for various needs (single vision, bifocal, progressive), and prescription sunglasses. Reading glasses are also eligible if medically necessary or prescribed to address a vision condition. However, purely cosmetic eyewear, such as non-prescription fashion glasses or non-corrective colored contact lenses, do not qualify. Eligibility requires that eyeglasses are primarily for medical care or to treat a specific vision problem.

Additional Vision Expenses

Beyond prescription eyeglasses, a Flexible Spending Account covers a range of other vision-related expenses. Routine eye exams are an eligible cost for maintaining eye health and obtaining necessary prescriptions. Contact lenses, including daily, weekly, or monthly disposables, are also covered, along with essential care items like contact lens solutions and cases. Vision correction surgeries, such as LASIK, are eligible expenses if performed to treat a medical condition rather than for cosmetic reasons. Other qualifying items include repair kits for eyeglasses and certain types of eye drops for conditions like allergies or dry eyes, if they address a medical need.

Submitting FSA Claims

Utilizing FSA funds for vision purchases involves two methods: using an FSA debit card directly or submitting claims for reimbursement. Many FSA plans issue a debit card linked to the account, usable at the point of purchase for eligible expenses. For out-of-pocket expenses, individuals must submit a claim form with proper documentation to their FSA administrator for reimbursement. This documentation usually includes an itemized receipt detailing the service or product, date, provider’s name, and amount paid. If an insurance plan is involved, an Explanation of Benefits (EOB) from the insurer may also be required.

A key aspect of FSAs is the “use-it-or-lose-it” rule, mandating that funds must be spent by the end of the plan year or be forfeited. Many employers offer options to mitigate this, such as a grace period, extending the time to incur expenses by up to two and a half months into the new plan year. Alternatively, some plans allow a limited amount, currently up to $660 for plan years ending in 2025, to be carried over. Confirm with your plan administrator which options are available, as employers can offer either a grace period or a carryover, but not both. Careful planning and timely claim submission are important to maximize FSA benefits.