June 30 is a common flexible
spending account (FSA) deadline, including for many government
employees; FSA Store offer tips to help them avoid losing unused
funds
DALLAS, June 25,
2024 /PRNewswire-PRWeb/ -- Millions of Americans are
employed by federal, state, and city governments and rely on them
for their health benefits. In fact, the federal government alone
employs more than 2 million people. A common benefit across
employer-sponsored health plans, including government plans, is the
flexible spending account (FSA). Today, Health-E Commerce®, parent
brand to FSA Store® – the first and leading online marketplace
dedicated exclusively to selling FSA-eligible products – is urging
individuals who are enrolled in FSAs to be aware of the
June 30 FSA spending deadline to
avoid losing unused funds.
June 30 is
one of the most common, but least talked-about deadlines for FSA
users. In total, FSA users forfeit over a billion dollars every
year because of missed deadlines, and we're on a mission to change
this.
"June 30 is one of the most
common, but least talked-about deadlines for FSA users," said
Rachel Rouleau, chief compliance
officer for Health-E Commerce. "In total, FSA users forfeit over a
billion dollars every year because of missed deadlines, and we're
on a mission to change this by educating account holders about
their deadlines and the many valuable ways they can spend their
tax-free healthcare dollars."
What is an FSA? An FSA is a tax-advantaged account that
consumers can enroll in through their employer-sponsored benefits
program. Employees can contribute to the account through pre-tax
payroll contributions and employers may contribute as well. This
reduces the employee's taxable income and helps them pay for a wide
range of expenses. FSA-eligible expenses are determined by the
Internal Revenue Service.
Three things to do now to avoid losing money to a missed
deadline.
1) Know your deadline. All FSAs have a deadline by which funds must
be spent each year. While the majority of private employers that
offer an FSA have a December 31
deadline, a common deadline for government and many state plans is
June 30. The spending deadline is the
date by which all funds must be used or they will be forfeited.
Other deadlines to be aware of include:
- Grace period deadline. Employers may opt to give employees a
grace period of two-and-a-half months after their plan year
deadline to spend down remaining FSA funds from the previous
calendar year.
- Carryover extension. Employers may allow employees to carryover
up to $640 in FSA funds from 2024 to
2025.
2) Check your FSA balance. According to a report from the
Employee Benefits Research Institute, the average amount that
consumers contributed to FSAs in 2022 was $1,291. Roughly half of all FSA users forfeited
funds in 2022, and the average amount forfeited was $441. Anyone who is unsure of how much they
contributed and how much is remaining in their account should check
their online FSA portal or contact their FSA administrator. FSA
Store allows consumers to easily track their FSA spending and
deadline and to receive automated alerts about upcoming deadlines
so they don't lose funds.
3) Map your spending through the end of the year. The list of
eligible FSA expenses has expanded in recent years to include
doctor visits, surgical procedures, a wide variety of clinical
services, and an extensive list of everyday essentials. Some of the
most popular ways to spend FSA dollars include:
- Over-the-counter medications.
- Sunscreen and moisturizers with SPF.
- First-aid kits.
- Allergy medications.
- Acne treatments.
- Menstrual care products.
- Drug-free pain relief products.
- High-tech items like hearing aids, acupuncture devices,
migraine relief bands, health monitors, and deep tissue pain relief
devices.
FSA Store offers a free, searchable eligibility list that makes
it easy to personalize FSA spending and get more value from these
accounts by using tax-free dollars to purchase everyday healthcare
items. According to FSA Store experts, the average household spends
$1,600 a year on items that could be
purchased with tax-free FSA funds.
To learn more about FSA deadlines, visit the FSA Learning Center
at FSAstore.com.
Media contact: Barbara Tabor,
barbara@taborpr.com, 651-230-9192
About Health-E Commerce
Health-E Commerce is the parent brand to FSA Store and HSA Store,
online stores that serve the 70+ million consumers enrolled in
pre-tax health and wellness accounts. The company also created
Caring Mill™, a popular private-label line of health products
through which a portion of every purchase is donated to the
Children's Health Fund. Since 2010, the Health-E Commerce brands
have led the direct-to-consumer e-commerce market for exclusively
pre-tax health and wellness benefits. Health-E Commerce plays an
essential role in expanding product eligibility for important new
categories within the list of eligible medical expenses.
Media Contact
Barbara Tabor, FSA Store,
651-230-9192, barbara@taborpr.com, www.FSAStore.com
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SOURCE FSA Store