Using Your FSA

 Does your current employer offer a “Flexible Spending Account” as an added benefit? If yes, are you utilizing it correctly? First, let’s go over what a flexible spending account is. Also called a flexible spending arrangement, an FSA may be used for medical expenses, dental care and vision care. The amount you decide to contribute to the account for the year is deducted from your salary before income taxes. The maximum amount you can contribute in a year is $2,550. This reduces your taxable income, saving you money on taxes. Depending on your benefit plan, your employer may contribute to your FSA as well. You may be unaware that not only can you use your FSA for your own medical expenses, but also expenses incurred by your spouse or any dependents you claim on your taxes.
While you can’t use your FSA for insurance premiums, you can use it for copayments, coinsurance, deductibles, prescription medications, and dental and vision care, according to the IRS. FSA can also be used towards braces, crowns and implants just to name a few. One of the few procedures they do not cover is anything cosmetic, as it does not prevent or treat an oral illness or disease.
As we close in on the end of the year, many people have money left over that they did not use. Unfortunately, FSA is “use it or lose it” meaning the amount in your account at the end of the year will expire. Most offices close for the holidays, so don’t procrastinate on any pending treatment, as your tax-free dollars will not roll over to the next year!
For more information, please call 661-255-2545.  The office is located at 27420 Tourney Road, Suite 270 in Valencia.