FSA Question

[ctinct]

I have $75 or so left in my FSA. This is the first year I have had one, so I'm not up to speed on all the ins and outs of these. My plan has a grace period until March 31, but are grace periods normally just to claim the money, or generally can one also incur expenses and then claim them? I just wrote an email to the administrator of the plan asking this question, but I figure some of the great minds here will know how FSAs generally work.

Also, if I can not claim any expoenses I incur in Jan., Feb, or March, I plan to go out tomorrow and buy otc stuff. I really don't need anything, thanks in large part to my CVSing. If I were to donate this stuff to the women's shelter or homeless shelter, would I be able to claim a tax deduction for them? I'm guessing no, since the money is already tax-free.

I'm not going to be in this position next year. I have very few out of pocket medical costs, and with the elimination of otc stuff next year, it's just not going to be worth it to me, so I didn't sign up again. Thanks for any help.

 

[racechick8293]

As far as I'm aware, you can use the $75 to buy over-the-counter medications, such as Tylenol, cold medicine, contact lenses, first aid kit, etc. Even if you don't need it, I would use up the money and give to family/friends. It's better than simply losing the money.

And, no, I don't believe that you can donate the funds.

Also, here's a pretty good article with some other ideas:
http://www.bankrate.com/finance/money-guides/use-fsa-money-so-you-don-t-lose-it-1.aspx

 

[vicki_c]

You can still use the $$ to purchase things through the March deadline AFAIK - that's how ours works (oh - contradicted by the poster below - I guess I would have to check the fine print in my plan - I always use up all my $$ long before the end of the year).

However, most OTC items will no longer be covered - I think that starts January 1, but I'm not sure.

On the tax deduction thing, I bet you could count it towards your charitable donations. I don't think the fact that it was reimbursed by your FSA has anything to do with it. It's a donation to charity and you still paid for the items. I'm not a tax expert, though, but I don't see any issue with this.

 

[jedijill]

You need to spend the money by 12/31. You have until March to claim reimbursement from your account. I just used up my last $57 at Drugstore.com's FSA section.

Just FYI, you won't be able to use your FSA for OTC products unless you have a dr's perscription.

HTH

Jill in CO

 

[ctinct]

Thanks for the replies---I like the idea of using Drugstore.com, cause it tells you what is eligible and what is not, and it will be easier to keep a total online rather than shopping in a store. I learned I accidently threw out some receipts during the year for stuff that would have been eligible-vaseline, in particular. There are some things that don't make a whole lot of sense to me. For instance, Panama Jack after-sunburn stuff IS eligible, but sunscreen (so one can possibly PREVENT sunburn and maybe even skin cancer) is not. Where is the logic in that one?

Oh, well, off to do some shopping.

 

[kaytieeldr]

You can donate your purchases and, if you itemize, claim the donations as tax deductions.

What you can't do is claim medical expense tax deductions for any items you paid for with your flexible spending funds, since you weren't taxed on that money in the first place. It'd be double-dipping.

 

[dreamin_disney]

I would use it by Dec. 31 just to be on the safe side. Figure out what over the counter meds you will need though out the year and buy it.


our fsa if you dont use it you lose it. I've been doing this 3-4 years and twice I have gotten a check for

1. $87
2. $76

people didnt use all their funds so they divide it up and give it to those that have fsa fund so happy bonus to me when peole dont use it up-lol!

but be sure to use it up. I know i'd hate having my leftover money divided and handed out.

 

[*pixie*dust*]

You have until March 31st to file claims against expenses incurred in 2010. You will need to use it for OTC by end of day tomorrow if you have no other 2010 expenses.

 

[CarolAnnB]

You need to check your own plan. For this year only, our plan allows us to spend thru March 31, 2011 and claim it against 2010. This is due to all the changes next year, they are I guess trying to give people a little break if they didn't spend it this year since so many things are not eligible next year. Every other year we had to spend it all be Dec 31.

 

[FLAngie]

You need to check your own plan. For this year only, our plan allows us to spend thru March 31, 2011 and claim it against 2010. This is due to all the changes next year, they are I guess trying to give people a little break if they didn't spend it this year since so many things are not eligible next year. Every other year we had to spend it all be Dec 31.

Lucky you! I wish our plan did this. We had to spend it all by tomorrow. I bought a LOT of Tylenol, cold medicine and contact solution.

 

[vicki_c]

You need to check your own plan. For this year only, our plan allows us to spend thru March 31, 2011 and claim it against 2010. This is due to all the changes next year, they are I guess trying to give people a little break if they didn't spend it this year since so many things are not eligible next year. Every other year we had to spend it all be Dec 31.

I bet that's what ours is this year too - because I swear I saw that in an e-mail from HR. I never did go back and check - too lazy!

 

[3boymthr]

Just a thought - FWIW not all FSA plans run on a calendar year basis. Mine runs April 1 to March 31 and I have until June to make claims so double check on the dates.

The ability to buy OTC meds and supplies ends on January 1. You don't have to buy just medicines many items like bandaids, etc are also covered until January 1.

 

[ExPirateShopGirl]

Exactly what Carol said. Check with your employer's HR department. We are allowed to incur charges through March 15, 2011 for this year and file the claims before March 31, 2011.

I have about 2400 left in mine which will go towards stocking up on OTC meds tomorrow, new eyewear next week, Orthodontia bills, etc. Once that is gone I'll start spending next year's funds.

You need to check your own plan. For this year only, our plan allows us to spend thru March 31, 2011 and claim it against 2010. This is due to all the changes next year, they are I guess trying to give people a little break if they didn't spend it this year since so many things are not eligible next year. Every other year we had to spend it all be Dec 31.

 

[3boymthr]

Double post....

 

[Coll0610]

The documents we get for our plan say that sunscreen is an eligible expense, so stock up for your next Disney trip!

 

[snowywhite89]

I have $75 or so left in my FSA. This is the first year I have had one, so I'm not up to speed on all the ins and outs of these. My plan has a grace period until March 31, but are grace periods normally just to claim the money, or generally can one also incur expenses and then claim them? I just wrote an email to the administrator of the plan asking this question, but I figure some of the great minds here will know how FSAs generally work.

The grace period is only for a claim but all the bills have to have happened in 2010. Say you were paid once a month on the last day, then your last FSA payment would be on 12/31/10. If you did not get a grace period to submit you might not be able to spend that money. So no using 2011 payments against a 2010 FSA.

Also, if I can not claim any expoenses I incur in Jan., Feb, or March, I plan to go out tomorrow and buy otc stuff. I really don't need anything, thanks in large part to my CVSing. If I were to donate this stuff to the women's shelter or homeless shelter, would I be able to claim a tax deduction for them? I'm guessing no, since the money is already tax-free.

You could not take a tax write-off for sure. I believe the FSA is for your family but others may know better.

[/QUOTE]I'm not going to be in this position next year. I have very few out of pocket medical costs, and with the elimination of otc stuff next year, it's just not going to be worth it to me, so I didn't sign up again. Thanks for any help.[/QUOTE]

Use the money up on OTCs.

 

[vicki_c]

never mind

 

[mrodgers]

I can use mine through March 2011. That is use it, not get reimbursements from 2010.

I usually go to the eye doctor in December using FSA to pay for the appointment. I usually do not have enough money left for my contacts so I wait until January to order contacts. This way I use what is left of the 2010 balance then the remaining owed on the contacts comes from the 2011 balance.

I've done this several years. Some folks are saying it must be 2010 usage but reimbursed up through March, some folks like me are saying that you can use it up through March as in using for doctor copays or whathaveyou that occur between January and March. Thus, it must be plan specific and you need to ask your plan administrator.

 

[skw444]

It depends on the employer so check your plan. This was changed a couple of years ago. Here's a little info from an article on Bankrate.com:

However, FSAs do have one major shortcoming: If you don't use the money, generally at the end of your benefit year, you lose it. Because of this no-carryover rule, many workers annually forfeit sometimes sizable amounts of FSA money.

Complaints about this restriction prompted the Internal Revenue Service a few years ago to change the rules. Now, says the IRS, spending plan participants can make claims against their accounts for up to two and a half months after the end of their benefit year. If you're on a calendar benefit year that ended Dec. 31, you can use your 2008 contributions for expenses incurred as late as March 15.

The hang-up here is that it's up to employers to implement the extended-access option. The IRS said they could offer the extra FSA time, not that they had to offer it. If your employer doesn't provide you the extra time, then you must spend up your account by the end of the benefit year, which in most cases is Dec. 31.


Read more: Ways to use FSA money so you don't lose it http://www.bankrate.com/finance/money-guides/use-fsa-money-so-you-don-t-lose-it-1.aspx#ixzz19ha2BjkP

 

[imsayin]

How about your medical miles? I was going to submit mine, but ended up using the money on something else. You can get 16.5 cents per mile. If you add up all your trips to the doctor, dentist, etc. it adds up.