Say Goodbye to the “Use It or Lose It” Days: How To Plan and Budget Your FSA This Year


Now that the IRS has adjusted FSA contribution limits for 2022 and allowed participants to carry over unused funds, employees can take a slightly different approach to FSA budgeting and planning. Here are some tips on how to spend your FSA funds this year.

1. Think about your past and future medical expenses

If you’re wondering how much to contribute to an FSA, think about your past and future medical expenses. Remember, you can use this account for a host of eligible medical expenses, including dental and vision expenses. 

2. Use your FSA funds for more than just prescriptions and medical appointments

While many people use their FSA to cover prescriptions and copays, there is a lot more you can purchase online at the FSA Store. In addition to regular doctor appointments, emergency room visits, prescriptions and any planned surgeries, you can also use your FSA to purchase:

  • Cold and allergy medications
  • Vitamins and supplements
  • Skincare items
  • New mom and baby products
  • Joint and muscle pain relief

Consider some of the products you use the most on and check to see if they’re eligible on the FSA Store. This can help make the most of your FSA dollars and save on some everyday items.

3. Don’t expect to plan the perfect budget

For most people, it’s fairly easy to account for regular medical expenses throughout the year. However, it’s difficult to estimate the right amount for unexpected costs and emergencies. When budgeting your FSA for these types of expenses, consider factors like your general health and chronic conditions. Then try and estimate how much you might need for these expenses.

Healthcare FSA with rollover

A Clarity FSA lets you set aside tax-free dollars for health-related expenses not covered by your insurance plan, saving you about 30% on average. Plus, you can rollover a portion of your unused funds into next year. This way you won’t feel rushed to “use it or lose it” with your FSA contributions and you can budget more knowing you can carry over unused funds at the end of the year.  Contact us today for more information.