Skip to headerSkip to main contentSkip to footer
Get our Free E-newslettersGet our Free E-newsletters
Kiplinger logoLink to homepage
Get our Free E-newslettersGet our Free E-newsletters
Subscribe to Kiplinger
Subscribe to Kiplinger
Save up to 76%
Subscribe
Subscribe to Kiplinger
  • Store
  • Home
  • Investing
  • Retirement
  • Taxes
  • Personal Finance
  • Your Business
  • Wealth Creation
  • More
    • Podcasts
    • Economic Outlooks
    • Tools
  • My Kiplinger
    • Kiplinger's Personal Finance Magazine
    • The Kiplinger Letter
    • The Kiplinger Tax Letter
    • Kiplinger's Investing for Income
    • Kiplinger's Retirement Report
    • Store
    • Manage My E-Newsletters
    • My Subscriptions
  • Home
  • personal finance
  • insurance
insurance

7 Smart Uses For Your Flex-Account Money

A flexible spending account offered through your employer is a great fringe benefit that lets you pay medical and child-care expenses with pre-tax dollars.

by: Kiplinger Team
February 14, 2014

Thinkstock

A flexible spending account offered through your employer is a great fringe benefit that lets you pay medical and child-care expenses with pre-tax dollars. Make sure you take full advantage of it when deciding how much to contribute -- because the amount you can set aside for health-care expenses is now limited to $2,500, a rule change from the health-care law that took effect in 2013. Another big change now permits some employers to allow employees to carry over $500 from one year to the next, although not all plans have made this change (see Big Changes to Flexible Spending Accounts).

We put together this slide show as a reminder of the kind of big-ticket expenses you can pay with medical flex-plan dollars and to encourage you to make the most of this benefit. If you’re unsure whether your employer’s plan covers a specific item, be sure to ask your plan administrator.

1 of 9

Prescription Eyeglasses

iStockphoto

Always wanted the latest designer frames but were reluctant to pay the big bucks? You can use before-tax dollars from your FSA to cover the costs of quality frames, even if you don’t have a vision plan at work.

2 of 9

Full Body Scan

iStockphoto

Have you been putting off a diagnostic check or screening? Body scan procedures are expensive, anywhere from $400 to $1,500. But if you can run the cost through your medical flex plan, it’s like getting a healthy discount of as much as 35%.

3 of 9

Orthodonture

iStockphoto

Braces can cost a bundle, for yourself or your kids. A flex plan can take a bite out of the financial pain.

4 of 9

Lasik and Laser Eye Surgery

iStockphoto

The potential tax break may make it easier for you to see the benefit of a procedure that has been dropping in cost but still runs from $2,000 to $2,500.

5 of 9

Weight-Loss Camp

iStockphoto

The cost of a weight-loss program, if prescribed by your doctor to treat obesity, can qualify for reimbursement through a medical flex plan. You’ll need to submit evidence of medical necessity when you submit your bill for reimbursement. Summer camps for weight loss range from $600 to $1,000 a week.

6 of 9

Hypnosis

iStockphoto

Still trying to quit smoking? Uncle Sam will help pay the bills for hypnosis or another smoking-cessation program by letting you use pretax FSA cash. Amounts paid for nicotine gum and patches count, too.

7 of 9

Medication

mediacations

iStockphoto

When determining how much to set aside in your FSA, be sure to include the estimated cost of prescriptions you and members of your family are likely to need. (You can no longer use FSA money for non-prescription drugs except insulin.)

8 of 9

Cosmetic Surgery

iStockphoto

Sorry, you can’t run the cost of a face-lift, tummy tuck or breast augmentation through your FSA. But if you save enough by taking full advantage of your flex plan, well ...

9 of 9

More From Kiplinger

Thinkstock

SLIDE SHOW: 30 Ways to Cut Health-Care Costs

SLIDE SHOW: 10 Insurance Mistakes to Avoid

SPECIAL REPORT: Health Care and Insurance

  • insurance
  • health insurance
Share via EmailShare on FacebookShare on TwitterShare on LinkedIn

Recommended

12 Ways the Biden Stimulus Package Could Put (or Keep) Money in Your Pocket
Coronavirus and Your Money

12 Ways the Biden Stimulus Package Could Put (or Keep) Money in Your Pocket

President-elect Biden's "American Rescue Plan" includes several proposals to assist people financially harmed by the pandemic.
January 15, 2021
What You'll Pay for Medicare in 2021
Healthy Living on a Budget

What You'll Pay for Medicare in 2021

For Medicare premiums 2021, look for modest increases in premiums and out-of-pocket costs.
December 16, 2020
Making Wise Choices During Open Enrollment
health insurance

Making Wise Choices During Open Enrollment

Contributing Editor Lisa Gerstner runs through the new variables of the 2020 open enrollment season. Also, hosts Sandy Block and David Muhlbaum talk a…
November 17, 2020
What the New President Means for Your Money
Politics

What the New President Means for Your Money

President-Elect Biden wants more consumer protections and perks for the middle class and seniors.
November 17, 2020

Most Popular

Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer
Coronavirus and Your Money

Where's My Stimulus Check? Use the IRS's "Get My Payment" Portal to Get an Answer

The IRS has an online tool that lets you track the status of your second stimulus check.
January 18, 2021
Biden Calls for $1,400 Payments as Part of $1.9 Trillion Relief Package
Coronavirus and Your Money

Biden Calls for $1,400 Payments as Part of $1.9 Trillion Relief Package

Under Biden's plan for a third stimulus check, the $600 second-round stimulus checks would be increased to $2,000.
January 14, 2021
When Could We Get a Third Stimulus Check?
Coronavirus and Your Money

When Could We Get a Third Stimulus Check?

President-elect Joe Biden and others in Congress are pushing for a third-round of stimulus checks, but it might be a while before we get them.
January 18, 2021
  • Customer Service
  • About Us
  • Advertise With Us (PDF)
  • Privacy Policy
  • Cookie Policy
  • Kiplinger Careers
  • Accessibility
  • Privacy Preferences

Subscribe to Kiplinger's Personal Finance

Be a smarter, better informed investor.
Save up to 76%Subscribe to Kiplinger's Personal Finance
Dennis Publishing Ltd logoLink to Dennis Publishing Ltd website
Do Not Sell My Information

The Kiplinger Washington Editors, Inc., is part of the Dennis Publishing Ltd. Group.
All Contents © 2021, The Kiplinger Washington Editors

Follow us on InstagramFollow us on FacebookFollow us on TwitterConnect on LinkedInConnect on YouTube