I believe the answer to this question should be “yes.” However, it should only be a small enough amount that you know you can spend it each year. Why is this? Because the contributions to your flexible spending accounts (FSA) are made on a “use it or lose it basis,” so they don’t carry over from year to year.
I really enjoy contributing a small amount to my FSA each year, of $150-$200. It is great because the amount is deducted pre-tax from your income, and therefore, decreases your taxable income. Also, my employer provides me with a VISA debit card that I can use to make purchases on eligible items directly from my account, without having to submit reimbursement forms.
What are the various types of FSA eligible expenses? Lots of things! Several of the items I use the account for are listed below. Usually, you can obtain an eligle items list from your employer of things you can buy. It’s surprising how many everyday items qualify!
- Prescription medications
- Contact Lens Solutions
- Co-pays at doctor visits
- Contact lenses/eyeglasses
- Tylenol
- Certain Over-the-Counter medications
Keep on learning!
Jacob
