What to Consider for Your Flexible Spending Account

FSA Planning Video

Participants, thinking about enrolling in a flexible spending account (FSA)? Planning your annual election amount doesn’t have to be overwhelming.
You want to choose the right amount – just enough to cover your out-of-pocket costs without leaving too much in the account at the end of the year.
Watch our short video for some tips for a successful FSA experience. 

Video Transcript

Enrolling in an FSA is a smart choice to help you pay for out of pocket medical expenses. As you plan for your election amount, here are a few things to consider to make the most of your money.

The maximum amount you can contribute is determined by the IRS and your employer. If you have a spouse or dependents, your FSA covers them too.

First, take a look at the MyChoice Accounts eligible expenses list to get an idea of how you can spend your FSA funds. Next, use an online calculator or MyChoice Accounts worksheet to forecast your expected spending for next year.

Now, think about some of the following expenses that you can cover with your FSA:

  • Co-pays
  • Prescription medications
  • Dental Work
  • Orthodontics
  • Glasses or contacts
  • Over-the-counter treatments
  • First aid
  • …and much more!

Add up your known expenses and decide if you want extra funds to cover an emergency. Once you’ve determined your election amount, your employer and MyChoice Accounts can handle the rest. Each pay period, you’ll have the proper amount deducted from your paycheck pre-tax and added to your FSA.

And the best news about a healthcare FSA is that the entire amount you fund for the year is available on day one of your plan.

For most plans, you’ll want to consider spending down your FSA each year.

If your plan has a carryover feature…and you still have money in your account at the end of the year…you can apply some of this year’s money to next year’s FSA. 

When you need to use your FSA to pay for eligible expenses, just swipe your MyChoice Accounts debit card. Don’t forget…FSAs usually require a proof of purchase. So, keep those receipts and documents handy. Take a picture with your phone, scan into your computer or file away.

Using your FSA is a great way to take advantage of tax savings and have peace of mind that you’ll have funds when you need them.