FSA End of the Year Dilemma

Home Money Health and Safety Insurance FSA End of the Year Dilemma

Let us assume that you've put money into a Health Care Reimbursement Account (HCRA) or a Dependant Care Savings Account (DCRA). You estimated how much you'd use, but find that your family hasn't been as sick as expected. Yet FSAs are a use it or lose it proposition. Approaching the end of the year, how can you use the money (legally) without losing it?

For DCRAs:

1. Review how much you spent on childcare. If it is more than the amount of the DCRA, you may have missed some receipts that you can submit.
   
   
2. Did you use "sick kid care" at all? If your child was too sick to go to daycare and you paid someone to watch your child while you worked, you can get a hand written receipt for the services rendered and have that person sign the DCRA claim form for those dates.
   
   
3. Activity fees and payment for field trips do not count toward FSAs. However, summer camp to keep kids up to age 12 does count. That Boy Scout or Campfire (or even church based daycamp) over the summer may be reimbursable.

For HCRAs:

1. If you had a co-pay for a doctor visit or procedure, and then received a later bill for the percentage insurance did not cover, you can submit a claim for that percentage insurance did not cover that you later had to pay out of pocket.
   
   
2. Remember, over-the-counter items now count for HCRA claims. Check your grocery bill for aspirin, Tylenol, and Pepto-Bismol purchases. These can be claimed for reimbursement.
   
   
3. Can you get any dental work done over the holidays?
   
   
4. If you need a new pair of (prescription) glasses, purchase them before the end of the year. Given the use it or lose it provision of HCRAs, you can consider getting a spare pair of prescription glasses or contacts as well.
   
   
5. If all else fails, Grandma can always get a boxed set of Citrical and Metamucil. (It's OTC and reimbursable.)

Take the Next Step: As we approach the end of the year, review how you have used funds in your HCRA or DCRA. If you have excess funds, look into several of the above tips, so you don't lose your money. Also, use this review to make any future adjustments to the amount you set aside.

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