If you have a flex spending account, then you know it is set up through your employer and is a way to potentially save hundreds on medical expenses. However, if you don’t spend the money put aside in your FSA, then you might lose it. Over $400 million each year is forfeited when employees forget about the earned money in their account or just miss the deadline. (source) Don’t lose your flex spending account balance, make an appointment today and you can put it towards hearing aids.
What is a Flexible Spending Account?
Wikipedia explains a flexible spending account, or FSA is “one of a number of tax-advantaged financial accounts, resulting in payroll tax savings.” Many employers offer this type of account and arrange to put money away for you from each paycheck in a tax free account. The money in a flexible spending account can only be used for approved medical purchases that are not covered through health insurance coverage. This can include the insurance premiums and deductibles though, as well as many other expenses such as over-the-counter medications and medical devices, like hearing aids.
How Much Can You Save with Your FSA?
You can check with your tax professional or your employer for the details on your particular situation and the benefits available through your FSA; but the IRS outlines just how much money you can save. In 2018, if you contributed the full amount and were in the 30% tax bracket (for example) you could save $795. This year the maximum allowed contribution to a flexible spending account by an employee was $2,650. In 2019, that amount is increasing to $2,700. Although most FSAs have a “use it or lose it” policy, there isn’t a strict cut off for most flexible spending accounts, you can ask for an extension for 2 ½ months or defer up to $500 over to the next calendar year. Just don’t leave the money in your FSA without ever spending it because that negates all the benefits you can get from this type of offer.
Consult with the Hearing Experts at Kenwood Hearing Center
Have questions about your hearing or hearing aids? We are here to help! Please contact us today and schedule an appointment at one of our convenient Ohio hearing center locations: Bowling Green, Toledo, or Wauseon. The experts at Kenwood Hearing Center are here for you to help you with not only hearing loss, but your overall hearing health.