FSA question

[Anonymous]

I am a fed (at least for now), so this question would be for the FSA Feds rules.

I’m considering lens replacement eye surgery (I’m severely nearsighted and not a candidate for Lasix) and had a consult yesterday where they quoted $4-8k per eye. I was trying to calculate how much of this I can use an FSA to cover. The annual contribution limit is around $3,600, but there is the grace period, so I was wondering if I put in the max this year and do the max next year, would I be able to use $7200 if I scheduled my surgery in early 2026?

This seems like it’s not the intent of the program, but if I could have $7,200 of the surgery paid with pre-tax funds, it would be more attainable.

[Anonymous]

The grace period is only for dependent care accounts. It doesn't apply to health accounts (since 2015) .

[Anonymous]

The cost has to be incurred in the year for which you set aside funds. You do get a few months after the end of the year to submit claims but you still need to match the deduction year to the cost year.

I vaguely recall there are some special rules for braces because they recognize that is a case where the upfront cost cover services for a few years but that doesn’t seem relevant anyway

[Anonymous]

Do they do both eyes at the same time? Could you have one eye done is 2025 and one in 2026?

[Anonymous]

Anonymous wrote:I am a fed (at least for now), so this question would be for the FSA Feds rules.

I’m considering lens replacement eye surgery (I’m severely nearsighted and not a candidate for Lasix) and had a consult yesterday where they quoted $4-8k per eye. I was trying to calculate how much of this I can use an FSA to cover. The annual contribution limit is around $3,600, but there is the grace period, so I was wondering if I put in the max this year and do the max next year, would I be able to use $7200 if I scheduled my surgery in early 2026?

This seems like it’s not the intent of the program, but if I could have $7,200 of the surgery paid with pre-tax funds, it would be more attainable.

I believe the FSA limit for 2025 is $3,300. Have you considered enrolling in a HDHP plan? That should allow you to contribute $4,300 ($8,550 if married) into an HSA which can be used for medical procedures.

[Anonymous]

Anonymous wrote:The grace period is only for dependent care accounts. It doesn't apply to health accounts (since 2015) .

This is incorrect. Carryover is $660. Last year it was $640.

https://www.fsafeds.gov/public/pdf/fsafeds-hcfsa-cut-paste-content.docx?h=msapjr1w6jf15gmoia5dppo6e8hm83xds3cizz7zu48paek4owcy

[Anonymous]

Anonymous wrote:

Anonymous wrote:I am a fed (at least for now), so this question would be for the FSA Feds rules.

I’m considering lens replacement eye surgery (I’m severely nearsighted and not a candidate for Lasix) and had a consult yesterday where they quoted $4-8k per eye. I was trying to calculate how much of this I can use an FSA to cover. The annual contribution limit is around $3,600, but there is the grace period, so I was wondering if I put in the max this year and do the max next year, would I be able to use $7200 if I scheduled my surgery in early 2026?

This seems like it’s not the intent of the program, but if I could have $7,200 of the surgery paid with pre-tax funds, it would be more attainable.

I believe the FSA limit for 2025 is $3,300. Have you considered enrolling in a HDHP plan? That should allow you to contribute $4,300 ($8,550 if married) into an HSA which can be used for medical procedures.

I believe you can have both, but the FSA can only be used for dental/vision. (See LEXFSA).

https://www.fsafeds.gov/explore/lex-hcfsa

[Anonymous]

Anonymous wrote:The cost has to be incurred in the year for which you set aside funds. You do get a few months after the end of the year to submit claims but you still need to match the deduction year to the cost year.

I vaguely recall there are some special rules for braces because they recognize that is a case where the upfront cost cover services for a few years but that doesn’t seem relevant anyway

+1. A decade ago, before IVF was covered, my DH and I were both feds. We contributed the max to both FSAFeds accounts. We did one cycle in Oct/Nov (unsuccessful) and one cycle in Feb/March (successful). We were able to save a bit of money with that strategy.

[Anonymous]

Anonymous wrote:

Anonymous wrote:The cost has to be incurred in the year for which you set aside funds. You do get a few months after the end of the year to submit claims but you still need to match the deduction year to the cost year.

I vaguely recall there are some special rules for braces because they recognize that is a case where the upfront cost cover services for a few years but that doesn’t seem relevant anyway

+1. A decade ago, before IVF was covered, my DH and I were both feds. We contributed the max to both FSAFeds accounts. We did one cycle in Oct/Nov (unsuccessful) and one cycle in Feb/March (successful). We were able to save a bit of money with that strategy.

While you are right about orthodontia payments, FSA contributions are on the family level and you cannot both contribute the max the same year.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The cost has to be incurred in the year for which you set aside funds. You do get a few months after the end of the year to submit claims but you still need to match the deduction year to the cost year.

I vaguely recall there are some special rules for braces because they recognize that is a case where the upfront cost cover services for a few years but that doesn’t seem relevant anyway

+1. A decade ago, before IVF was covered, my DH and I were both feds. We contributed the max to both FSAFeds accounts. We did one cycle in Oct/Nov (unsuccessful) and one cycle in Feb/March (successful). We were able to save a bit of money with that strategy.

While you are right about orthodontia payments, FSA contributions are on the family level and you cannot both contribute the max the same year.

yes you can...
If the employee's spouse has a plan through their employer, the spouse can also contribute up to $3,200 to that plan. In this situation, the couple could jointly contribute up to $6,400 for their household.

[Anonymous]

OP, carryover funds aren’t available until after the runout period ends (usually 30 or 60 days after plan year end), so you will have wait until after that to access those funds.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am a fed (at least for now), so this question would be for the FSA Feds rules.

I’m considering lens replacement eye surgery (I’m severely nearsighted and not a candidate for Lasix) and had a consult yesterday where they quoted $4-8k per eye. I was trying to calculate how much of this I can use an FSA to cover. The annual contribution limit is around $3,600, but there is the grace period, so I was wondering if I put in the max this year and do the max next year, would I be able to use $7200 if I scheduled my surgery in early 2026?

This seems like it’s not the intent of the program, but if I could have $7,200 of the surgery paid with pre-tax funds, it would be more attainable.

I believe the FSA limit for 2025 is $3,300. Have you considered enrolling in a HDHP plan? That should allow you to contribute $4,300 ($8,550 if married) into an HSA which can be used for medical procedures.

I believe you can have both, but the FSA can only be used for dental/vision. (See LEXFSA).

https://www.fsafeds.gov/explore/lex-hcfsa

True. Not sure if this situation falls under vision or health.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I am a fed (at least for now), so this question would be for the FSA Feds rules.

I’m considering lens replacement eye surgery (I’m severely nearsighted and not a candidate for Lasix) and had a consult yesterday where they quoted $4-8k per eye. I was trying to calculate how much of this I can use an FSA to cover. The annual contribution limit is around $3,600, but there is the grace period, so I was wondering if I put in the max this year and do the max next year, would I be able to use $7200 if I scheduled my surgery in early 2026?

This seems like it’s not the intent of the program, but if I could have $7,200 of the surgery paid with pre-tax funds, it would be more attainable.

I believe the FSA limit for 2025 is $3,300. Have you considered enrolling in a HDHP plan? That should allow you to contribute $4,300 ($8,550 if married) into an HSA which can be used for medical procedures.

I believe you can have both, but the FSA can only be used for dental/vision. (See LEXFSA).

https://www.fsafeds.gov/explore/lex-hcfsa

True. Not sure if this situation falls under vision or health.

Lasik is covered under the LEXFSA.

[Anonymous]

Anonymous wrote:OP, carryover funds aren’t available until after the runout period ends (usually 30 or 60 days after plan year end), so you will have wait until after that to access those funds.

What does this mean? Two years ago I carried over some 2022 money and maxed my 2023 contribution. I was able to receive a reimbursement for all of it just after 1/6/2023 when my son had lasik.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:The cost has to be incurred in the year for which you set aside funds. You do get a few months after the end of the year to submit claims but you still need to match the deduction year to the cost year.

I vaguely recall there are some special rules for braces because they recognize that is a case where the upfront cost cover services for a few years but that doesn’t seem relevant anyway

+1. A decade ago, before IVF was covered, my DH and I were both feds. We contributed the max to both FSAFeds accounts. We did one cycle in Oct/Nov (unsuccessful) and one cycle in Feb/March (successful). We were able to save a bit of money with that strategy.

While you are right about orthodontia payments, FSA contributions are on the family level and you cannot both contribute the max the same year.

yes you can...
If the employee's spouse has a plan through their employer, the spouse can also contribute up to $3,200 to that plan. In this situation, the couple could jointly contribute up to $6,400 for their household.

You are right. I was thinking of DCFSA.