It’s that time of the year again that no one can escape - tax season! Ugh! I thought this would also be a good time to remind those of you who have an FSA account with grace period that March 15 is only a couple of weeks away. As a dentist in Omaha for over 30 years, I have seen patients either forgot that they have a FSA with grace period or they didn’t know they could use it on dental services. That’s your tax free money to be used on the out-of-pocket medical expenses and if you don’t use it, you will lose it and that will be really sad.
A Flexible Spending Account (FSA) is a special account that allows you to set aside a sum of tax-free money to pay for your out-of-pocket health care expenses. You can use FSA to pay for copayments, deductibles, some drugs, dental and other health care costs. If you're not sure you have an FSA with grace period, you will need to check with your employer.
Generally, for a standard FSA you must use up all the money within the plan year. If your employer offers a grace period, you will have 21/2 extra months or until March 15, 2018 to use up all your fund. And if you don't your money will be forfeited. However, do not confuse grace period with run-out period. Run-out period gives you an extra 90 days to submit the medical expenses that you have incurred in 2017.
At the end of the year or grace period, you lose any money left over in your FSA.
Consider this a good time to schedule a teet