Key Facts About Your 2023 FSA Dollars 

As unbelievable as it may seem, it feels like just a few months ago we were in November 2022. And now, we’re rapidly approaching the end of 2023 – Halloween has just passed and Thanksgiving is coming up soon. Therefore, it’s time to start thinking about the funds available in your Flexible Spending Account (FSA) for 2023 and the contribution limits for 2024. In 2023, those who participated in HCFSA or LEX HCFSA could contribute up to $3,050, which could be used for dependent care expenses, such as child daycare or eldercare. The new FSA contribution limits for 2024 have been announced: $3,200 for Health Care FSA and $5,000 for Dependent Care FSA. For those who are not familiar, an FSA is a medical spending account that employees fund throughout the year via payroll deductions.

It’s important to understand the differences between FSAs and HSAs when planning for medical expenses. Both FSAs and HSAs allow you to contribute with pre-tax dollars, but they have different tax benefits. HSA contribution limits differ from FSA limits and allow catch-up contributions for those aged 55 and above, while FSAs do not.  Both HSAs and FSAs let you save for qualified medical expenses, but HSAs usually have higher contribution limits and let you carry funds forward. However, you can only enroll in an HSA if you have an HSA-eligible health plan. So, it’s important to evaluate your options carefully and select the one that best fits your healthcare needs.

One crucial thing to remember about FSAs is the “use-it-or-lose-it” rule. Any remaining balance typically reverts back to the employer at year-end. Therefore, it’s essential to plan ahead and utilize your 2023 FSA and Health Savings Account (HSA) funds now. The carryover amount for health care and limited-purpose FSAs is increasing. For the year 2023, you can carry over up to $610 in unused funds for the plan year 2024.

2023 FSA Eye Products And Services Eligible Items

• Eye Glasses
• Eye Drops (OTC)
• Eye Equipment (prescription glasses and sunglasses and prescription contact lenses. Items associated with the maintenance and care are also considered eligible reimbursable expenses under consumer-directed healthcare accounts.
• Eye Exam
• Eye Mask for Pain Relief
• Eye Pressure Monitor
• Eye Surgery
• Eye Treatment Medication (Source FSA: Eye treatment medications are eligible for reimbursement with a prescription with a flexible spending account (FSA), health savings account (HSA), a health reimbursement arrangement (HRA), or a limited-purpose flexible spending account (LPFSA). Eye treatment medication reimbursement is not eligible with a dependent care flexible spending account (DCFSA). If this is an over-the-counter (OTC) eye treatment medication, it would be fully eligible with an FSA, HSA, HRA, or LPFSA.
• Eye Glass Accessories (Eye Glass Screw Driver, Pre-Moistened Lens Wipes, Keychain Reading Glasses, Eye & Ear Glass Droppers, Reading Glasses On Your Phone, Lens Cleaning Spray, Lens Wipes, Anti-Reflective Leans Cleansing Spray, Repair Kit, Nose Pads, Sunglass Reader With Magnetic Detachable Polarized Lens, Sunglass Reader With Smoke Tint,

Flexible Spending Account 2023 And Eligible Items.

The year 2023 FSA dollars are for eligible expenses and care provided from the effective date of enrollment through March 15, 2024.  If you have a health plan through your job, you can use an FSA to pay for healthcare costs such as (Source: Metlife, It is important that you check with your employer):

• Health insurance copayments, office visits, co-insurance payments, and deductibles
• Dental work and orthodontia
• Prescriptions
• Therapy and counseling services
• Chiropractic care and acupuncture
• Hospital fees, surgery, and diagnostic services
• Allergy testing
• Home healthcare: Thermometers, pain relief devices, blood pressure monitors, medical alert devices, blood sugar test kits, and more
• Over-the-counter (OTC) medications: Cough, cold, flu, allergy, asthma, pain relief, and more
• Baby and child supplies: Breast pumps, bed mats, bedwetting underwear, baby monitors, and more
• Skincare: Sunscreen, acne products, medicated lip balms, and more
• Oral care: Pain relief, water flossers, denture cleanser tablets, and more
• Foot care: Orthotics, foot creams, callus and corn removers, blister treatment, and more
• Digestive health: Heartburn relief, antacid tablets, laxatives, acid reflux pillows, and more
• Vitamins: Prenatal, nutritional supplements, multivitamins, and more
• First aid supplies: Bandages, pain relief creams, antibiotic ointments, first aid kits, and more
• Sexual health medications and products: OTC and prescription birth control, condoms, ED medications, fertility tests, and more
• Menstrual products: Pads, tampons, menstrual underwear, menstrual pain relief, and more
• Incontinence supplies: Pads, underwear, bed underpads, and more
• Smoking cessation: Programs, products, and more

Key Takeaways About FSAs, HSAs, and HRAs (Source: Aetna)

• FSAs and HSAs both offer tax benefits and have annual contribution limits.
• You must have an HDHP to qualify for an HSA.
• Funds in an HSA roll over from year to year. There is no “use it or lose it” rule.
• Many HSAs offer investment options.
• FSAs are “use it or lose it.” That means you’ll lose any funds you don’t spend by the end of your plan year unless the plan has a grace period or carryover feature.
• You can use your FSA to cover eligible healthcare costs at the start of the year. The entire amount is available on day one.
• HSA holders cannot spend more than the funds deposited in their HSA. However, they can save receipts for qualified medical expenses and file for reimbursement later after their balance has grown.
• You can’t contribute to an HSA and a traditional FSA in the same year. But HSA holders can also use an LPFSA for dental and vision expenses, and a Dependent Care FSA for childcare costs.
• You can contribute funds to an HSA and FSA. Only your employer can contribute to your HRA.
• Anyone can contribute to your HSA: you, your employer, or another person.
• With HRAs, employers may limit which health expenses are eligible and the amount you’re able to roll over from year to year.

The 2023 FSA period is January 1, 2023, through December 31, 2023. You are allowed to carry over into 2023 and must use the remaining funds by March 15, 2024. It is important to note that the 2022 FSA funds can only be used to reimburse eligible expenses for care provided from the effective date of your enrollment through March 15, 2023.

Make sure you take advantage of the benefits that your FSA account allows. Contact us if you have questions about your FSA account and eligible items eye-related items. We are here for you.