Fall is here and winter is approaching; Thanksgiving followed quickly by Christmas, there is no time to think at the end of the year. The holiday months are very hectic so the last thing on your mind, in December, is a flex spending account. Did you know your FSA benefits will expire December 31st and any money left in the account January 1st cannot be redeemed?
What is a flex spending account?
A flex spending account or FSA, is an account designated for out of pocket medical expenses. The money is pre taxed and is usually loaded on a prepaid card for your convenience.
How does it work?
FSA is part of your employer’s benefits package. To start you want to estimate your family’s annual out of pocket medical expenses. Take that amount and divide it by the number of paychecks you receive annually. Once the account is active, you will have pre tax payroll deductions added to an account that you can access for medical, dental and vision expenses.
What can I use it for?
Medical, dental and even vision expenses are covered. However, the FSA account cannot be used for cosmetic procedures.
UDA Chicago accepts FSA accounts and all PPO dental insurance plans. Use your flex spending arrangement with us for: annual exams, dentures, root canals just to name a few.
One Last Thing
A good rule of thumb is to keep all of your paperwork and receipts related to the expenses purchased with your flex spending account. The IRS may ask for specific documentation to verify your FSA expenses.