If you are leaving money in your Flexible Spending Account (FSA) you are literally throwing money away. Every year Americans sign up for the payroll auto deduction with the intent of using it as intended, a tax savings plan for medical expenses. Yet, too many forget to use the money or are unsure what qualifies so simply leave the money in the account. Any money left in your account is forfeited to your employer plan to use as administrative costs. That’s like handing over part of your regular paycheck.
The FSA works like a line of credit. You can spend more than what is in the account as long as the amount is covered by future deposits. AT the end of the year, it is pretty clear how much money is available. Vision expenses qualify including prescription glasses. If you are constantly looking for your readers or wish you had an extra set of sunglasses- its time to use it, or lose it.