The end of the year is approaching quickly, which means many different things, like making plans for your New Year’s resolutions or preparing taxes if you own a business. It also means you will lose the money in your flexible spending account (FSA) if you don’t use it!
An FSA is an account you might have wherein you make contributions out of every paycheck. The money goes into the account before it is taxed, so this can be a nice way to save money. During the year, if you need to pay for approved expenses, you can simply use the money saved up in your account. For many FSA plans, you can even withdraw the money you haven’t placed into the account yet (which is helpful if you get hurt in the middle of January!).
The one downside to having an FSA is the fact that you will lose any money you have in the account if you do not use it by the end of the year. Now, with a health savings account (HSA), this is not the case. An HSA allows you to save up money (to a certain amount) every year, and then carry over the account’s balance.
So what does this all mean? Well, if you have a flexible spending account with money in it, you should really consider using it between now and the end of the year.
One consideration you might want to make with regard to your FSA money is to schedule a procedure you need, but haven’t gotten around to having performed. Another suggestion for using FSA funds is to replace an old pair of orthotics or get your first pair.
Orthotic devices are versatile medical tools that can be used to treat and prevent a wide range of foot and ankle problems. We can take a look at your unique foot structure and gait, and then determine if you might benefit from a pair of custom orthotics. The “custom” part is important because these devices are created to work specifically with your unique feet.
For more suggestions on how to use your flexible spending account money before it disappears, or to find out if anything you want is approved, simply give us a call at (510) 647-3744. You can also contact our Berkeley, CA office online today!