Spending FSA money before the year ends

If you have a flexible spending account, December is often when people notice money left in it. Since 2020, over-the-counter medicines can be paid for with FSA funds without a prescription, and Quell is an over-the-counter drug.

Know your plan’s deadline

FSAs are generally use-it-or-lose-it, but plans differ. Some end on December 31; some offer a grace period into the next year; some let a limited amount carry over. Your plan administrator can tell you which applies and when the last eligible purchase date is.

The date that counts

Ask whether your plan goes by the order date or the delivery date. The confirmation email shows the date you paid. If your plan goes by delivery, order early in December, since the site doesn’t promise a delivery date.

HSAs are different

Money in a health savings account doesn’t expire at year end, so there’s no rush to spend it. It can still be used for over-the-counter medicines whenever you need them.

Paying and claiming

Whether a particular FSA card goes through on the payment page depends on the card and the plan. If it’s declined, pay another way and claim it back, if your plan allows that. Keep the confirmation email; it lists the product, subtotal, shipping and total.

Stocking up sensibly

A bottle runs about a month at the labeled dose. Buying a few months’ worth before the deadline is reasonable; buying far more than you’ll use before the expiration date isn’t. HSA, FSA and eye drops has the general rules.