New Rules For Using Money In Your Flexible Spending Account

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By 98.5 KTK

We officially enter the last month of the year and time is ticking for the remaining money in your flexible spending account (FSA). This year you might have a little more money than usual left in your FSA. According to the Centers for Disease Control and Prevention, by the end of July this year, about a third of all adults in the U.S. had skipped or delayed routine medical care because of concerns about the COVID-19 pandemic. If you’re in that group, then you may have spent less than you expected to on copays, deductibles, and other medical bills. The money in your FSA is use it or lose it. Fortunately, this year there are some major new additions to the list of what you can spend your FSA dollars on thanks to changes in the rules for these accounts embedded within the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which was passed earlier this year. Besides spending on first-aid supplies and sunscreen, tucked into the CARES Act is a provision that allows people to use their FSA dollars for feminine products. So stock up on tampons, pads and liners. Also a provision in the CARES Act is the return of over-the-counter medications that can be purchased with FSA funds without a prescription. Allergy medicine, acetaminophen, ibuprofen and the like are all covered.

SOURCE: Consumer Reports

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