As we near the end of 2015, don’t forget to check the balances of your Health Care and Dependent Care Flexible Spending Accounts (FSAs). Unlike a Health Savings Account (HSA), FSA balances generally don’t roll over from year to year — you “use it or lose it.” Some FSAs do, however, allow a small rollover, so check with your human resources department to learn the specifics of your account. Additionally, some accounts allow an extra 2 ½ months after the end of the calendar year for you to use the money in your FSA.

 

As a reminder, you can use Health Care FSA funds to pay for eyeglasses, a vasectomy, drug addiction treatment and much more. These funds cannot be used to pay for unnecessary cosmetic surgery, diaper services and teeth whitening, among other things. One more thing: Expenses reimbursed from your Dependent Care FSA cannot also be claimed as a deduction on your federal income taxes.

Source: Internal Revenue Service