Use it or Lose it?! Flexible Spending Accounts and Dental Expenses

Do you have money remaining in your employer-provided healthcare flexible spending account (FSA) for 2023? FSAs are accounts established by an employer that allow employees to save pre-tax dollars on certain medical and dental expenses. The FSA limit is set by the IRS and the limit for 2023 is $3,050.00. If you put money in your FSA and haven’t seen your dentist yet, there’s still time to schedule an appointment before the end of the year.

How to use your FSA

• Use your FSA money to cover dental or health insurance co-pays or deductibles.
• Covered expenses for dental would include orthodontics, bridges, mouthguards and other dental appliances ordered by your dentist.
• Money in your FSA cannot be used to pay for medical or dental premium costs.
• FSA accounts can cover expenses for the employee and their spouse or dependents.
• Remember the “use it or lose it” rule. FSA money generally must be used within the year designated. That means expenses for 2023 must be submitted on or prior to December 31, 2023.
• Some employers may – but are not required to- provide options that include carryover into the following year for a small amount of the FSA, but not the full amount.
• Some employers may provide a grace period of up to 2 ½ months into the following year to submit 2023 expenses.
• Check with your HR department to get accurate information about the rules of your particular FSA.
• Note that FSA sign-up is typically done during an employer’s open enrollment period.
• The FSA limit for 2024 will remain at $3,050.