Much of 2012 may seem but a memory, but if you socked money away in an FSA (flex spending account) then 2012 lives on … at least until March 15th. That’s because the deadline for the grace period for the 2012 plan period is March 15th, 2013. So, if you do not use the dollars you have deferred into your FSA during the plan period you will lose them! Your first step, if your plan allows for a grace period, verify with your plan administrator to see if you have remaining dollars from 2012 in your flex spending account. Then, if you do, it makes sense to review all of your out-of pocket medical expenses for 2012 and the first 2 ½ months of 2013 to ensure you haven’t missed any receipts for which you could be reimbursed.
If you have money left in your FSA, here are some qualified expenses you can submit:
- Annual deductibles for a health-care plan
- Medical, dental, orthodontic, and optical expenses that your health plan does not cover
- Insulin and over-the-counter medicines prescribed by a physician
- Out-of-pocket costs for pharmacy prescriptions prescribed by a physician
- Dependent care expenses for a child under the age of 13
Refer to the IRS website for a more detailed list: http://www.irs.gov/publications/p502/index.html
If you are going to “lose” dollars for 2012, you should review your deferrals for 2013 relative to your expected out-of-pocket medical and dependent care expenses for 2013 to ensure that you are only deferring what you will actually use.
Julie E. Hall, CFP® is the Director of Financial Planning at Center for Financial Planning, Inc. In addition to her contributions to Money Centered and Center Connections, Julie was named to the 2013 Five Star Wealth Managers list in Detroit Hour magazine. Julie is a member of the Financial Planning Association™ (FPA®) and is currently serving on the Financial Planning Association™ (FPA®) Pro-Bono committee, which works to help promote financial literacy within our local community.
Five Star Award is based on advisor being credentialed as an investment advisory representative (IAR), a FINRA registered representative, a CPA or a licensed attorney, including education and professional designations, actively employed in the industry for five years, favorable regulatory and complaint history review, fulfillment of firm review based on internal firm standards, accepting new clients, one- and five-year client retention rates, non-institutional discretionary and/or non-discretionary client assets administered, number of client households served.
The information has been obtained from sources considered to be reliable, but we do not guarantee that the foregoing material is accurate or complete. Any opinions are those of Center for Financial Planning, Inc., and not necessarily those of RJFS or Raymond James. You should discuss any tax matters with the appropriate professional.