Spend your FSA now!

If your employer offers you a health Flexible Spending Account (FSA) you must use up your remaining balance by the end of the month or face losing it.

FSAs are a great way to pay for healthcare costs because it's funded from pre-tax income. The downside is that if you don't spend each calendar year's funds you lose it. You'll start to see pharmacies, opticians and other health-related outlets promoting FSA-eligible products and services, trying to capture your remaining dollars.

FSAs are limited to $2550/year per employer so if you're married and your spouse may be able to put away the same amount with his/her employer. Remember, you don't have to put away the maximum but you might find it easy to spend this amount in any case. How?

FSAs can be used to pay typical medical, dental and eye-related costs, including prescription eyeglasses. You can even use your FSA to pay for insurance deductibles and copayments. Unfortunately, you can't use your FSA to pay your insurance premiums. But hey, over-the-counter pain relievers, bandages, even acupuncture!

Look here to learn more about FSA benefits: FSA

Look here to see what are FSA-eligible expenses: Expenses