Last month on Money Mindset, we discussed implementing an FSA or HSA plan if your insurance plan allows it. Just as a reminder, these accounts allow for tax-deductible contributions, and the funds can be taken out tax-free if they are used for qualified medical expenses. For an FSA (flexible spending account) funds are lost if not used by year-end (some plans may allow for an extra 2.5 month grace period or a small carryover amount, but this depends on plan rules). If your household utilizes an FSA, make sure to plan out your medical expenses prior to year-end to fully maximize the funds in the account. If it appears that you’ll have some leftover, you can visit sites such as fsastore.com to find a list of products that are eligible to be purchased with FSA funds. Go ahead and use the funds to purchase these products that you know you’ll need for the coming year.
