Is your Flex Spending Account, or FSA, going the way of the dodo bird? Not yet, but you should be prepared for some drastic changes starting in 2011. 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. As soon as 2011, 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