FSAs are employer-sponsored benefits, so when you leave your job, you typically lose access to your remaining FSA funds. However, you may have some options:

• You usually have a run-out period (often 90 days) to submit claims for expenses incurred before your termination date
• You may be eligible to continue your Healthcare FSA through COBRA, though you'll have to pay the full cost plus a 2% administrative fee
• Any unused funds after the run-out period typically revert to your employer

Plan carefully if you know you'll be changing jobs mid-year.

Yes! Your FSA funds can be used to pay for qualified medical expenses for you, your spouse, and your tax dependents, even if they're not covered under your health insurance plan. This includes:

• Your spouse
• Your children (under age 27 for tax purposes in most cases)
• Other tax dependents you claim on your tax return

A Letter of Medical Necessity is a document from your healthcare provider stating that a product or service is medically necessary to treat a specific condition. Some items require an LMN to be eligible for FSA reimbursement, including:

• Massage therapy
• Gym memberships (when prescribed for a specific medical condition)
• Air purifiers
• Ergonomic equipment
• Certain over-the-counter items

The LMN should include your diagnosis, the recommended treatment, and how long you'll need the item or service.

Generally, you cannot change your FSA election once the plan year begins unless you experience a qualifying life event (QLE). Qualifying events include:

• Marriage, divorce, or legal separation
• Birth or adoption of a child
• Death of a spouse or dependent
• Change in employment status (you or your spouse)
• Significant change in cost of dependent care
• Change in residence

You typically have 30 days from the qualifying event to make changes to your FSA election.

Yes! Since the CARES Act was passed in 2020, over-the-counter (OTC) medications and drugs are FSA-eligible without a prescription. This includes:

• Pain relievers (ibuprofen, acetaminophen, aspirin)
• Cold and flu medications
• Allergy medications
• Antacids and digestive aids
• Sleep aids
• Cough drops and throat lozenges

However, OTC medical supplies like bandages, thermometers, and blood pressure monitors still need to be for medical purposes.

There are typically three ways to access your FSA funds:

1. FSA Debit Card: Use your FSA debit card directly at the point of sale for eligible purchases. This is the easiest method.
2. Pay Out-of-Pocket and Submit for Reimbursement: Pay with your own money, then submit an itemized receipt through your FSA administrator's website or mobile app.
3. Direct Provider Payment: Some FSA administrators allow direct payment to healthcare providers.

When submitting claims, you'll typically need an itemized receipt showing the date, description of service/product, amount, and provider name. Check with your FSA administrator for specific requirements.

While both FSAs and HSAs help you save on healthcare costs, there are key differences:

To determine your optimal FSA contribution, consider these expenses:

• Regular prescriptions (multiply monthly cost by 12)
• Planned medical procedures or surgeries
• Expected deductibles and co-pays
• Routine dental work (cleanings, fillings, etc.)
• Vision care (exams, glasses, contacts)
• Ongoing treatments or therapy
• Expected OTC medications and supplies
• Orthodontics (braces, retainers)

Pro tip: Review your previous year's healthcare spending as a starting point, but be conservative - it's better to contribute slightly less than to lose unused funds at year-end.