If you still have remaining funds in your Health Savings Account (HSA) or Flexible Spending Account (FSA) from last year, now is the time to act. Many accounts offer a grace period into the current year, allowing you to use these funds for necessary purchases like eye exams and prescription eyewear, including glasses and sunglasses. In this article, we'll break down the key details about your HSA and FSA, including rollover deadlines, eligible expenses, and how you can make the most of your remaining funds before they expire on March 15th.
Understanding the Difference Between HSA and FSA
While both HSAs and FSAs let you set aside pre-tax money for medical expenses, there are some important differences:
Health Savings Account (HSA): Available to individuals with a high-deductible health plan (HDHP), an HSA allows you to save money tax-free for medical expenses, including eye care. The major benefit of an HSA is that funds roll over year after year. So if you have leftover funds from last year, you can continue using them in the current year without worrying about expiration.
Flexible Spending Account (FSA): FSAs also offer pre-tax savings for medical costs, but funds generally need to be used by the end of the plan year. However, many FSAs provide a grace period extending into the new year, allowing you extra time to use your funds before they are lost.
Deadlines and Grace Periods for Last Year's Funds
HSA: With an HSA, there's no rush. Your funds will continue to roll over indefinitely, meaning you don't need to worry about a deadline for using last year's balance. You can use your funds for eligible medical expenses, including prescription eyewear, whenever you choose.
FSA: If you have an FSA, it's crucial to be aware of the March 15th deadline for using last year's remaining funds. This grace period gives you additional time—beyond the traditional year-end deadline—to use any leftover funds. If your plan includes a grace period, you must use your funds by March 15th to avoid forfeiting them.
If your FSA allows a carryover, you may be able to carry over up to $500 into the next year, but this doesn't apply to all plans. Check with your HR department or plan administrator to see if your plan includes this option because plans that have a grace period do not get a carryover.
Eligible Expenses: Eye Exams and Prescription Eyewear
HSA and FSA funds can be used for a variety of medical expenses, and vision-related costs are among the most popular. Here's how you can use your funds for eye health:
Eye Exams: Routine eye exams are eligible for reimbursement under both HSAs and FSAs. If you haven't had an exam recently, this is a great opportunity to schedule one before the grace period ends.
Prescription Eyewear: Prescription eyewear—including glasses and sunglasses—can be fully covered by both HSA and FSA funds. Whether you need a new pair of glasses or stylish prescription sunglasses, you can use your leftover funds to invest in eyewear that helps you see better and protects your eyes from harmful UV rays.
Why It Matters: Don't Miss the March 15th Deadline
It's essential to make use of your remaining FSA funds before March 15th. If you don't use them by this date, the funds will expire, leaving you with nothing to show for your pre-tax savings. For those with an HSA, there's no rush, as funds roll over indefinitely, but if you have remaining FSA funds, now is the time to act.
Using your HSA or FSA to pay for eye exams and prescription eyewear is a smart way to invest in your health while saving money. Don't let this opportunity pass by—take action before March 15th.
How to Check Your Deadlines and Remaining Balance
Here's what you need to do to avoid missing out on your funds:
Review Your Account: Log into your HSA or FSA account to check your balance and see how much you have left.
Know Your Deadline: If you have an FSA with a grace period, mark March 15th on your calendar to ensure you use your remaining funds by the grace period's end.
Spend Wisely: Use your funds for eye exams, prescription glasses, or prescription sunglasses before the grace period expires.
What you should leave with
Whether you need new glasses, prescription sunglasses, or an eye exam, now is the time to act. Neven Eyewear has a wide range of stylish prescription sunglasses and eyeglasses available to be customized to your prescription needs so you can find your perfect match. Don't lose money that's yours - use your FSA and HSA funds today to invest in your eye health and Take Action Before March 15th!
