COVID-19 Relief Ending: Last Minute HCFSA Buys
In 2020 and 2021, the Internal Revenue Service guidance allowed for more carryover and grace period leeway due to the pandemic, for some Healthcare Flexible Spending Accounts (HCFSA). This means that some participants could keep a higher balance in unspent funds to roll over to the next plan year or have a longer period to use those funds.
Unfortunately, the relief is coming to an end December 31, 2022. The maximum carryover amount for unspent funds in the 2022 plan year is $570, and the grace period is returning to the traditional two and a half months. But you don’t have to let your funds slip away. Here are few tips on how to spend any leftover monies.
“Every Day” Eligible Items
Your HCFSA can purchase items that you probably use regularly. This includes:
- menstrual products
- contact solution
- first-aid kits
- bug sprays
- thermometers; or
- heating pads
Also, there are many over-the-counter medications you can purchase like:
- pain relievers
- antibiotic ointment
- allergy suppressants
- digestive aids; or
- acne wash, cleanser and creams
Prepare for Cold and Flu Season
With the colder temperatures approaching, germs are in full swing. Help alleviate symptoms with:
- warm steam vaporizers
- saline nose wipes
- cough suppressants
- nasal irrigation kits
- chest rubs
- Epsom salt; or
- eye masks
A Few More Ideas
Here are a few more HCFSA-eligible ideas:
- muscle massagers and rollers
- hot and cold therapy stuffed animal
- kid themed gel bead ice packs
- lip balm with SPF 30+
- oral light therapy systems
- pulse oximeters
- prescription sunglasses; or
But Wait, There’s More
With all the options above, hopefully you won’t have any unused funds when your plan year expires. If you need more ideas, here's an extensive list of eligible items.
This blog is up to date as of December 2022 and has not been updated for changes in the law, administration or current events.
Purchases may result in a small commission to American Fidelity at no additional cost to you.