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Between figuring out last-minute gifts to travel plans and filing work reports, about half Americans wind up letting the funds in their flexible spending accounts expire, effectively forfeiting upward of at least $400.
WTOP’s Dan Ronan reports unlike Health Savings Accounts, which allow unused balances to rollover indefinitely; money left in FSAs is generally forfeited at the end of the year.
Between figuring out last-minute gifts to travel plans and, dare I say, filing work reports, about half of Americans wind up letting the funds in their flexible spending accounts expire, effectively forfeiting upward of at least $400.
That’s according to The Wall Street Journal, which cited in its findings recent data from the Employee Benefits Research Institute. Officials determined that as some 10 million Americans abandon FSA funds, the dollar amount of unused monies tallies up to more than $4 billion each year.
But, remember, there are always options for making the most of the pretax funds when navigating the FSA world.
For starters, some companies allow employees to roll over a specific dollar amount at the end of the year. The maximum rollover amount allowed by the Internal Revenue Service is $660 this year.
The Journal also reported about two-thirds of U.S. employers offer a grace period that runs into the spring to use the funds.
Do refer back to your contribution plan to see where you fall in line, though.
So where can you make the most of the funds?
Well, items can be purchased either online or in an actual, physical store.
Generally, FSA users can apply their account’s earnings at most major retailers, including Costco, Walmart, Target and Walgreens.
Some of the best marketplaces that take the frustration out of figuring out what you can apply the funds to include the FSA Store, Truemed and Shop WealthCare, all online stores that specialize in FSA-eligible items.
Everything from skincare bundles to a red-light therapy face mask, foot massagers, Oura rings and even a Peloton bike or row machine are up for grabs on the mentioned sites.
With only a handful of days left in the year, make sure to get those ducks in a row.
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Gaby Arancibia
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