Are Glasses FSA-Eligible?Make the Best Use of Your FSA Funds

What Is an FSA?

FSA is the acronym for a Flexible Spending Account—also known as a Flexible Spending Arrangement.

An FSA is a health care account that allows you to enjoy a pre-tax benefit. Since FSA funds are pre-tax dollars, they reduce the amount on which you owe taxes. People typically don't get all the needed health coverage from their insurance plan alone. An FSA allows you to put money aside for healthcare expenses by contributing to the fund on a regular basis, but you can use the fund as needs arise. An FSA plan is provided directly by your employer's health plan.

What Is the Purpose of an FSA?

If your health care plan doesn't cover everything you need, an FSA helps you allocate funds for out-of-pocket expenses without owing taxes on those funds.

As a part of yearly healthcare open enrollment, you estimate the total of all medical expenses you'll incur that are not covered by insurance. You then elect to have equal installments deducted from each paycheck that add up to the total you've specified. You'll use the money in your account for specific medical, dental and vision care expenses not covered elsewhere. Importantly, if you incur medical expenses early in the year, but have not yet contributed enough to the FSA to cover those expenses, you can still access funds when you need them, up to the amount of your annual agreement.

Your FSA can be used for a wide range of medical expenses. These are just a few examples:

• Doctor-prescribed medications
• Deductibles and co-payments
• Crutches for injuries and rehabilitation
• Blood sugar test kits for people with diabetes

For a complete list of expenses allowed by the IRS, check here.

Is an FSA the Same as a HSA?

No, an HSA is a Health Savings Account—and there are numerous differences between FSAs and HSAs. While you can't use an FSA with a Marketplace insurance plan, which is a plan offered through the Affordable Care Act, HSAs are designed to be used with Marketplace plans with high deductibles.

There are several other key differences between FSAs and HSAs. In addition to their use inside or outside the Marketplace, FSAs differ from HSAs as follows:

• You can only get an FSA as an employee of a company—and your employer controls the account. In contrast, an HSA may be available from your employer or you can choose to set up your own account.
• Your FSA directly links to your job. If you leave, you no longer have that FSA account. With an HSA, you still have access to the account even if you leave the position where you established the account.
• Money you or your employer contribute to your FSA doesn't carry over into a new calendar year. In most cases, after the year ends, you forfeit any unused funds. An HSA can carry over to the following year.
• With an FSA, you can't earn interest on the funds in your account, while an HSA allows you to do so. An HSA is more than just a place to build a fund to cover medical expenses. You can use an HSA as an investment fund.
• Since you can carry over HSA funds not used within the calendar year, you can continuously add to the fund and put that money toward investments. You can leave funds in an HSA all the way up to retirement age, when you can withdraw the funds without a tax penalty.

Choose Visionworks for Your Eye Care Needs

Regular eye exams are crucial for maintaining excellent eye health—and yes—you can use your FSA for eye exams.

Make your appointment for your annual eye exam with Visionworks. Once your prescription is ready, you can use your FSA to purchase glasses, prescription sunglasses and contact lenses. With our 100-Day guarantee, you won't have to worry about rushing a decision for your eyewear. Change your mind? We'll change your glasses. No hassles and no questions asked.

Don't let your FSA funds expire! Contact Visionworks to schedule an appointment today at a convenient location near you.