With 2017 nearing an end it’s a great time to use up remaining dollars in your flexible spending account (FSA). FSA’s allow you to pay for IRS-qualified health care expenses with pretax dollars you save in a special account all year. The discount can be more than 30% depending on your tax bracket. Eligible expenses include co-pays, co-insurance, deductibles, prescription drugs, and even dental care.
The IRS limit on FSA contributions for 2018 is $2,650, $50 more than the limit this year.
The problem with FSA’s is that in most cases you must spend the money you put aside in an FSA account in the prescribed time period, often the calendar year. Don’t waste any of your saved FSA dollars!