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Here's how to spend your FSA money before the end of the year

With the end of the year fast approaching, there may be one more thing to check off your list — spending the money you put aside for medical expenses. During open enrollment each year, you can elect to use a flexible spending account (FSA), which lets you put pre-tax money aside for approved medical expenses.

FSAs provide the benefit of putting pre-tax money aside, which saves you in the long run by reducing your taxable income. “We all know there’s no free lunch, but there are ways to optimize your money and using your FSA is a great way to do it,” explained NBC News Senior Business correspondent Stephanie Ruhle. “You are basically doubling your money on most things related to health and wellness.”

“Don’t assume [an FSA] only covers major medical expenses,” Ruhle said. “Read the fine print. It includes a lot of regular items you buy at a pharmacy.” You can put FSA money towards things like copays, medical supplies like contact solution and bandages, or even procedures like Lasik. And a new addition to the family, whether it be a child or a spouse, counts as a qualifying life event and would allow you to increase your contribution to help cover those costs.

We all know there’s no free lunch, but there are ways to optimize your money and using your FSA is a great way to do it.

“There’s the concept of the deadline and of the grace period. Employers can offer a period of two and a half months for employees to spend the money, that would be until March 15,” explained Rida Wong, president of Health E-Commerce, the parent company of and “There’s also a rollover, which is up to $550 that can be fully rolled over into the next plan year.” Those grace period and rollover amounts are federally mandated, but which rules apply are up to your employer.

How to change your FSA contribution now SEPT. 23, 202003:22 There are more ways to spend your FSA money this year In addition to covering your copay at the doctor’s office, there are hundreds of items to choose from when it comes to spending FSA money. And the CARES Act changed some of the rules, adding items like OTC medicine without a prescription and feminine hygiene products, including period underwear, to the list for the first time.

Other oft-forgotten categories? Baby items, first aid supplies and sunscreen. “Popular baby monitors, things like Owlet, that’s a $400 item that’s FSA eligible,” Wong said. As an avid hiker, she pointed out that things for outdoor sports, like travel first aid kits and KT tape, are eligible items too. And it’s not just one offering of each product — take sunscreen as an example: “We carry everything from Supergoop as well as the typical Coppertone,” Wong said. is a great resource as it only sells eligible items, but you can buy them at any retailer and either submit the receipts for reimbursement or charge them to your benefits debit card. Make sure your item is actually FSA-approved before you buy.

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