Do you know you can use your FSA (Flexible Spending Account) and/or HSA (Health savings accounts) to access laser vision correction? Well, with the revised contribution limits and eligibility announcement by the IRS, last year, you now can!
The good news is these pre-tax funding alternatives can either cover all or at least most of the Lasik surgery expenses. For instance, The Flexible Spending Account (FSA), will allow you to contribute up to $2,750. Your employer can also contribute to your FSA account. On the other hand, the Health Savings Account (HSA), will allow you as an individual contributor to contribute up to $3,600. However, if you have a family package, you can contribute up to $7,200.
Because of the efficiency both HSA and FSA offer, they currently stand out among the most preferred financial options with long-term benefits. These two funding options are most popular among individuals seeking reliable ways to cater to their Lasik surgery expenses. When done right, these surgical procedures will get you out of contact lenses/glasses or at least reduce their use.
Currently, most refractive surgery experts point to the benefits of FSA and HSA as the main reasons why their patients can comfortably afford laser vision correction procedures. So, when you save in such accounts, you’re making a long-term investment for your vision care needs with tax-free money.
Understanding FSA
The contributions you set aside for your FSA account are normally from your regular paycheck. So, you get to set aside pre-tax dollars and use them for your out-of-the-pocket expenses. Also, your yearly contributions depend on the level you choose. Once you settle on a specific contribution level, you begin to make contributions (which are distributed throughout the year) to your account.
It gets even more exciting because you can access the money, and use it even before you make your contributions. However, the amount you contribute can mainly be used within 12 months. In some cases, your plan might offer you a grace period. But even with that, you still stand to lose your balance after the grace period. Interestingly, few plans might allow you to carry over the amount.
FSA and Laser Vision Correction
Although IRS tends to restrict how you use your FSA funds, you can still use the money to cater to your laser vision correction expenses. Some common procedures include PRK, SMILE, and LASIK.
The secret is knowing your current contribution limit and figuring out how to boost your funds to ensure you have enough for your procedures’ expenses. For example, you can decide to combine both your FSA and HSA funds or maximize the grace period to see how you can top off the amount.
Understanding HSA
Like FSA, an HSA account allows you to save up pre-tax dollars as part of your payroll deductions. Afterward, you can use the amount to pay for your out-of-pocket expenses, which include medical expenses excluded from your primary health insurance coverage.
The major difference between HSA and FSA is that with HSA, you must first be an active subscriber to a deductible health care policy. Also, the funds in your HSA accounts are only eligible for use after you deposit your contributions.
The good thing though, is that the money is yours and you get to decide when to use it. Plus, you won’t have to deal with the restricting “use or lose it” policy here! On top of that, older HSA contributors (55 years and above) get a chance to contribute an extra $1,000 to their accounts.
HSA and Laser Vision Correction
Your HSA account allows you to save up as much money as you need, before using it to cover your laser vision correction procedure.
So, whichever of these two funding options you choose for your procedure, always ensure you plan ahead of time. With the involvement of your doctor, of course!
Also, if you can enroll in these two funding options, do so. You’ll appreciate the benefits of saving money and achieving your long-term vision goals. A win-win situation!
