A health care flexible spending account (FSA) allows you to pay for out-of-pocket health care with money that is not taxed. The tricky part is that currently this money must be used by the end of the year.
ITEMS THAT TYPICALLY QUALIFY AS FSA PURCHASES ARE:
- Medical co-payments
- Prescription medications
- Hearing devices
- Approved dental work
- Hospital bills
- Eye exams
- Prescriptions
- And contacts
Health care reform may change this "use-or-lose" rule in the near future. Either way, planning ahead and utilizing this tax-free money to pay for medical expenses can stretch your dollar for healthy savings.