Is your Flex Spending Account, or FSA, going the way of the dodo bird? Not yet, but you have probably already seen some drastic changes that started this year. Many of our patients use their FSAs as a way to pay for healthcare expenses (like braces) using pre-tax dollars. Although there are currently no federal caps on the amounts you can set aside in a flex account, most employers set the limit at $5,000 per year. Starting in 2013, the federal government will restrict flex accounts to a maximum of $2,500 per year. Already taking place this year, FSA funds cannot be used for over-the-counter medicines unless they are specifically prescribed by a doctor.
If you want to keep more of your hard-earned money to help cover the cost of healthcare, you can write your congressional representatives at http://www.savemyflexplan.org