What Can I Spend Fsa Money On

When you buy through our links, Insider may earn an affiliate commission. Learn more.

FSA money usually has to be used by the end of the year, but the COVID-19 relief bill signed last year gets you one more year to spend. This means you have until December 31, 2021 to spend FSA money earmarked for last year. The extension also applies for your 2021 FSA money — the credit will be available until the end of 2022.

We recommend checking your plan details to ensure you're making the most of your money.

If you still have FSA bucks to spend, consider FSAstore.com. FSAstore.com has thousands of items that are guaranteed to be covered by your FSA. Below, we answer frequently asked questions about FSA dollars, and how you can avoid letting your money go to waste.

What is FSA?

Many employers offer access to Flexible Spending Accounts, which let you put away pre-tax dollars for eligible healthcare products and services (think everything from surgery and medical bills to thermometers and first-aid kits). Storing money in an FSA account is a great deal, provided you spend it before the deadline.

How does FSA work?

FSA operates on a use-it-or-lose-it provision; you must spend the money in your FSA account by the end of the year or risk losing it for good. Typically, you'd either have to spend it all by a deadline (either December 31 or March 15) or roll a portion of it over.

The COVID relief bill signed late last year changes things, though.

Now, you have an extra year to spend your FSA dollars, for both 2020 and 2021. Put plainly: the FSA money you accrued in 2020 will still be available to you until December 31, 2021; the money you accrue in 20201 will be available until December 31, 2022.

FSA Store estimates that more than $400 million is forfeited every year in FSA funds because employees either miss or forget their spending deadlines (based on estimates using data from the 2017 FSA and HSA Consumer Research conducted by VISA). It's your money and it's pre-tax — it doesn't make sense not to use it.

What can you buy with your FSA money?

You can use FSA dollars to pay for medical expenses that aren't covered by a health plan, like co-pays, deductibles, dental and vision care, or dependent daycare, though eligible expenses can vary based on the plan. But if it's nearing the end of the year and you haven't used your money to help meet your deductible or pay medical expenses, you have the option of spending it on supplies like over-the-counter medication.

The nitty-gritty details depend on the plan your employer has in place, but you can skip the burden of research by shopping the selection at the FSA store. They do the homework for you and curate more than 4,000 products that are guaranteed to be covered. If they're somehow not, you get your money back.

The Elvie Pump is a hands-free, wearable electric breast pump without any cords, wires, or tubes. It reduces the time aspect of pumping significantly, since you can be pumping while doing other tasks without worry.

Thinksport's SPF 50+ Sunscreen offers optimal but affordable protection without any potentially harmful chemicals.

First Aid Only's All-Purpose 200-piece First Aid Kit is well-organized so you don't have to shuffle around too much looking for whatever it is you need when you need it most, and it's packed to the brim with high-quality medical essentials.

This wrist brace is adjustable so you can apply the right amount of pressure to help alleviate some pain you may experience from repetitive wrist movements. Unlike other wrist braces you may find, this one can be used for either hand. Down to $15 from the FSAstore, this is a really good price to pay for such a versatile item.

Though a $1 discount may not seem like much, it's actually a 10% price cut from the typical selling price for a pack of these bandages from Welly. Not only are Welly Bravery Badges absorbent and flexible, they're also designed with fun patterns and come in a reusable metal tin.

Creative ways to spend your FSA money before the deadline

Here are a few items on FSAstore.com that you can buy with your pre-tax money before you lose it: thermometers, feminine care, sunscreen, vitamins, condoms, high-tech healthcare (at-home defibrillator, nausea relief bands, vibrating shoe insoles, ovulation predictors), and travel pillows with orthopedic neck support. View all categories here.

And since the new Affordable Care Act required over-the-counter medications (like Advil and Benadryl) to come with a prescription from a doctor for FSA reimbursement, FSAstore created a Prescription Process that contacts your doctor for you, so you can get the information you need to complete the purchase.

You can also buy products from Warby Parker or Felix Gray glasses with your FSA and HSA dollars as long as your FSA or HSA card is affiliated with a major credit card — you're even able to book an at-home Zeel massage with it.

Mara Leighton

Senior Education and Personal Development Reporter, Insider Reviews

Mara Leighton is the senior education and personal development reporter for Insider Reviews. In the spring of 2020, Mara spearheaded Insider Reviews' new education beat. She's reported on Yale's most popular course on happiness as well as essential workforce recovery programs, free instructional courses for non-ICU workers on operating mechanical ventilators, and a Johns Hopkins' contact tracing course designed to fill thousands of remote jobs. She's interviewed Google executives, presidential policy committee members, best-selling authors, leading researchers and professors, and NBC's Chuck Todd in her education coverage. She's most interested in personal development, skill-building, industry shifts, and increased accessibility for learners of all ages and socioeconomic backgrounds. Previously, Mara covered e-commerce for Business Insider from 2017-2020. She's written thousands of reviews and explainers, profiled emerging and established D2C companies, blogged through major retail events, and forecasted and analyzed industry trends. She also produced the vertical's weekly newsletter. Say hello at mleighton@businessinsider.com or tweet her @maraleighton. Learn more about how our team of experts tests and reviews products at Insider here. Learn more about how we review educational and personal development products.