If you are starting a new job, there are new rules regarding your FSA account. We’ll help you to understand the benefits of the rising of the FSA 2021 contribution cap.
What’s the FSA?
The FSA is pretax money from every paycheck designated towards health care expenses.
Technically the FSA can save you hundreds of dollars in taxes. Previously the contribution cap per year was $2,750.
In 2022 the cap increased to $2,850. Plus, the maximum carry-over amount rises to $570 from $550.
You can use your healthcare FSA for diverse medical expenses such as prescriptions, co-insurance payments, and deductibles.
According to the Coronavirus Aid, Relief, and Economic Security Act, your FSA funds can be used to buy over-the-counter medication without prescription.
Pain relievers, heartburn medications, allergy relievers, and feminine care products (tampons, pads, liners, cups, sponges, etc.) apply to the use of your FSA funds.
There’s also an extended deadline for using your 2020 FSA dollars. December 31, 2021, is the final date to exploit last year’s dollars.
In case you have specific doubts about the products and medicines you can acquire, visit FSA store and verify the eligibility of your funds.