Many people have a flexible spending account, but what is FSA? An FSA is an account you can use through your employer to cover the costs of some medical services. Employment and federal income tax isn’t deducted from an FSA account, so it is a great tool to help you save money on your medical costs.
What health services can be paid for with my FSA?
FSA accounts can be used for a whole host of medical products and services. There are too many to list here, but things like bandages, prescription medication or even psychological treatment can be covered by your FSA.
How can I use FSA for glasses?
If you have an FSA debit card you can easily use it to purchase prescription eyewear at EyeBuyDirect, just like you would use any other card. If you don’t have an FSA debit card all you need to do is print off the receipt of your purchase and submit it to your employer. This will work as proof that your purchase was medical in nature, and make it possible to use the money in your FSA account.
Why can I only get prescription glasses with my FSA?
As a flexible spending account can only be used for medical products and services, non-prescription eyewear can’t be covered by your FSA. Prescription eyeglasses or sunglasses correct your vision, so they are categorized as medical products.
Do I need to pay tax on my FSA?
You don’t need to pay employment or federal income tax on any contributions made to your FSA. After approval from you, the money is taken from your paycheck by your employer and put into the FSA. You can see an FSA as a tax-free portion of your salary that contributes to medical expenses.
How much money can I put into my FSA?
As of 2020, the limit on an FSA account is $2750 per year per employer, but this figure could change in the future. Your spouse can own their own flexible spending account with their employer.
Can I use my FSA for insurance premiums?
You can’t use your flexible spending account to pay for health insurance premiums, only direct medical expenses. It can be used for deductibles and copayments, however.
What are the limitations of an FSA?
The main limitation of a flexible saving account is that any leftover money usually doesn’t carry over into the following year. An FSA is really useful for fulfilling any medical purchases you make, including eyewear, but it’s important to keep track of the balance in your account. You don’t want to waste any leftover money! Note that a sum of $500 can be carried over in some cases, so check your plan carefully to make sure.
Can I open an FSA if I’m self-employed?
You cannot open a flexible spending account if you are self-employed. You need an employer other than yourself to open this kind of spending account.
Is there a penalty for withdrawing funds from my FSA?
Whether you can take funds back from your FSA to use on something other than medical expenses depends on your employer. Check with them to discover whether this is possible.
When can I change the amount I contribute to my FSA?
There are 3 situations that let you change how much money is taken from your paycheck. The first one is at open enrollment, where you will negotiate your contributions with your employer for the following year. The second is if your family situation changes, you get married for example. The third is if you change your plan or employer entirely.
So now you have all the information about buying eyewear at EyeBuyDirect with your FSA, why not take a look at our 1200+ styles and see what grabs your attention?