Question 1

What is a Flexible Spending Account (FSA)?

Accepted Answer

An FSA is an employer-sponsored benefit that lets you set aside pre-tax dollars to pay for qualified medical expenses. Because contributions come out before income taxes, you reduce your taxable income and effectively get a discount on every eligible purchase.

Question 2

Who is eligible for an FSA?

Accepted Answer

FSAs are offered through employers. If your employer offers an FSA benefit, you can enroll during open enrollment or after a qualifying life event (such as marriage, birth of a child, or loss of other coverage). Unlike HSAs, FSAs don't require a specific type of health plan.

Question 3

What is the difference between an FSA and an HSA?

Accepted Answer

The key differences: FSA funds are employer-owned and typically expire at year end ("use it or lose it"), while HSA funds roll over indefinitely and are individually owned. FSAs can be paired with any health plan; HSAs require a High Deductible Health Plan (HDHP). FSAs have lower contribution limits than HSAs.

Question 4

What is the FSA "use it or lose it" rule?

Accepted Answer

FSA funds that remain in your account at the end of the plan year are generally forfeited. However, your employer may offer either a grace period (2.5 extra months to spend funds) or a rollover option (carry over up to $640 in 2024) — but not both. Check your plan documents to see which option your employer provides.

Question 5

Can I have an FSA if my spouse has a different benefit plan?

Accepted Answer

Generally yes — both spouses can have their own FSA through their respective employers, and both can be used for eligible expenses for either spouse or any dependents. However, certain FSA types (like Dependent Care FSAs) have combined household limits.

Question 6

How much can I contribute to my FSA in 2024?

Accepted Answer

For 2024, the IRS limit for Health Care FSAs is $3,200 per year, per employee. Your employer may set a lower limit. Dependent Care FSAs have a separate limit of $5,000 per household ($2,500 if married and filing separately).

Question 7

When can I access my FSA funds?

Accepted Answer

Unlike an HSA, your full annual FSA election is available on day one of your plan year — even before you've contributed all the funds via payroll. If you elect $3,200, you can spend all $3,200 in January even though the deductions come out over the year.

Question 8

What is the deadline to enroll in an FSA?

Accepted Answer

You must elect your FSA contribution during your employer's open enrollment period, which typically occurs in the fall before the plan year begins. Outside of open enrollment, you can only enroll after a qualifying life event.

Question 9

Can I change my FSA contribution amount during the year?

Accepted Answer

Generally no — your FSA election is fixed for the entire plan year. You can only change your contribution if you experience a qualifying life event (such as marriage, divorce, birth of a child, or a change in employment status).

Question 10

Do employer contributions count toward the FSA limit?

Accepted Answer

Yes. The IRS limit applies to the combined total of employee and employer contributions. If your employer contributes $200, your personal contribution limit for 2024 is reduced to $3,000 (for the $3,200 employee limit).

Question 11

What products are FSA-eligible?

Accepted Answer

FSA-eligible products include prescription medications, over-the-counter medicines (no prescription required since the CARES Act 2020), first aid supplies, blood pressure monitors, contact lenses, bandages, allergy medicine, menstrual care products, and thousands more. IRS Publication 502 provides the full list.

Question 12

Are over-the-counter medicines FSA-eligible?

Accepted Answer

Yes — since the CARES Act passed in 2020, you can use FSA funds for OTC medicines without a prescription. This includes cold medicine, pain relievers, allergy pills, antacids, sleep aids, and more.

Question 13

Can I use my FSA for dental and vision expenses?

Accepted Answer

Yes. Dental expenses (exams, cleanings, fillings, orthodontia) and vision expenses (eye exams, prescription glasses, contact lenses, LASIK) are FSA-eligible.

Question 14

Are vitamins and supplements FSA-eligible?

Accepted Answer

Generally no — vitamins and supplements taken for general health are not eligible. However, if a doctor prescribes a specific supplement to treat a diagnosed medical condition (such as iron supplements for anemia), it may be eligible with a Letter of Medical Necessity.

Question 15

Can I use FSA funds for mental health services?

Accepted Answer

Yes. Therapy, psychiatry, and other mental health treatment costs are FSA-eligible medical expenses, including sessions with licensed therapists, psychologists, and psychiatrists.

Question 16

Is sunscreen FSA-eligible?

Accepted Answer

Yes — sunscreen with SPF 15 or higher that is broad-spectrum (protects against UVA and UVB) is FSA-eligible. This was clarified by the IRS and applies to most consumer sunscreen products.

Question 17

Can I use my FSA for my spouse or dependents?

Accepted Answer

Yes. You can use FSA funds for qualified medical expenses for yourself, your spouse, and any dependents you claim on your tax return.

Question 18

How do I pay for eligible expenses with my FSA?

Accepted Answer

Most FSAs come with a debit card you can swipe directly at pharmacies, doctors' offices, and retailers. You can also pay out of pocket and submit a reimbursement claim — most plans require a receipt and often an Explanation of Benefits (EOB) for medical services.

Question 19

Do I need to save receipts for FSA purchases?

Accepted Answer

Yes. Your FSA administrator may ask you to verify purchases with receipts and documentation. Keep receipts for all FSA spending — your administrator can request them at any time. FSA Shop's app can help you track eligible purchases.

Question 20

Can I use my FSA card at any store?

Accepted Answer

FSA debit cards work at most pharmacies (CVS, Walgreens, Rite Aid), grocery stores, and medical retailers. Not all items at every store are automatically marked as eligible — only FSA-eligible items at merchants with the right MCC codes will process without additional documentation.

Question 21

What happens if I use my FSA for a non-eligible expense?

Accepted Answer

If you use FSA funds for a non-qualified expense, you'll owe income taxes on the amount plus a 20% penalty. Your FSA administrator may ask you to repay ineligible amounts.

Question 22

What happens to my FSA if I leave my job?

Accepted Answer

If you leave your job, your FSA typically ends on your last day of employment (or at the end of the month, depending on the plan). You can only be reimbursed for expenses incurred while you were enrolled. You may be able to continue your FSA temporarily through COBRA.

Question 23

What happens to unused FSA funds at year end?

Accepted Answer

Unused FSA funds are generally forfeited at the end of the plan year under the "use it or lose it" rule. However, your employer may offer a grace period or rollover option — but not both. Review your Summary Plan Description to confirm which applies to your plan.

Question 24

What is the FSA grace period?

Accepted Answer

A grace period gives you an extra 2.5 months after the plan year ends to spend your remaining FSA balance. For example, if your plan year ends December 31, you'd have until March 15 to use leftover funds on eligible expenses.

Question 25

What is the FSA rollover option?

Accepted Answer

Instead of a grace period, some employers allow you to roll over up to $640 (2024 limit) of unused FSA funds into the next plan year. The rollover amount is set by the IRS and adjusts for inflation. Amounts above the rollover limit are still forfeited.

Question 26

Can I use FSA funds for expenses incurred before my enrollment date?

Accepted Answer

No. FSA reimbursements are only available for expenses incurred on or after your FSA enrollment date. You cannot retroactively reimburse expenses from before you were enrolled.

Question 27

How do I avoid losing my FSA funds?

Accepted Answer

Check your balance before year end and plan eligible purchases accordingly. Stock up on FSA-eligible items like contact lens solution, first aid supplies, OTC medicines, and sunscreen. Use FSA Shop to quickly find what qualifies and make the most of your remaining balance.

Question 28

What is FSA Shop?

Accepted Answer

FSA Shop is a free directory of FSA-eligible products. We help you find what you can buy with your FSA across 7,000+ products in 16 health categories. The web site covers FSA education; the mobile app lets you search by symptom, get price alerts, and build FSA shopping lists.

Question 29

Is FSA Shop free to use?

Accepted Answer

Yes — completely free. The web directory, mobile app, and all features are free with no subscriptions or hidden fees.

Question 30

How do I download the FSA Shop app?

Accepted Answer

Search "FSA Shop" in the Apple App Store or Google Play Store. The app includes symptom-based product search, price change notifications, and your personal FSA shopping list.

Question 31

Does FSA Shop sell products directly?

Accepted Answer

No. FSA Shop is a directory. When you select a product, you're directed to the retailer's site to complete your purchase using your FSA card.

Question 32

How is FSA Shop different from just searching Amazon or Google?

Accepted Answer

FSA Shop's product data is enriched specifically for FSA eligibility — we've mapped products to IRS categories, added eligibility reasoning, and built a symptom-to-product index you won't find anywhere else. Instead of guessing whether a product qualifies, we've done the research for you.

Frequently Asked Questions

FSA Basics

Contributions

Eligible Expenses

Using Your FSA

Deadlines & Rollover

About FSA Shop