The end of the year could mean frantically using up your flexible spending account, but at least there are some creative ways to do so.
An FSA is a benefit typically offered by large employers to help employees defray medical costs not covered by insurance. You designate a yearly FSA contribution. Your employer deducts that from your check prorated before taxes. Whenever you pay for an approved medical item, you draw down on those pretax contributions.
The problem with FSAs is you must use the money by the end of the calendar year (though many employers extend the deadline). Otherwise, you forfeit the balance. Though FSA money is typically used for medical co-pays, deductibles and prescriptions, here are a few other buys:
Hand sanitizer: With the regular flu and H1N1 running rampant, keeping hands clean is prudent, so sanitizer qualifies.
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Cold and flu medication: Over-the-counter cold remedies such as cough drops and syrups, throat lozenges and cold medicines are often reimbursable.
Sunscreen: You could stock up for summer or for a winter vacation. And some dermatologists recommend wearing sunscreen year-round. Those with sun protection factors more than 30 are typically covered by FSA, says sunscreen company Coppertone.
First aid: Such supplies as antiseptics, bandages, first-aid kits and joint supports are eligible.
Medicine cabinet staples: Pain relievers, antacids, heartburn relievers, antifungal athlete's foot treatments, acne treatments and allergy medication qualify. So do cotton swabs and balls.
Family planning: Birth-control pills and devices qualify, as do pregnancy tests and vasectomies.
Maintenance supplies and personal-care items generally are not eligible. And no medical marijuana either.
Contact lens supplies: You can use FSA money for eyeglasses and contact lenses and for contact-lens solution or eyeglass cleaning cloths.
Double-check with your plan administrator and visit www.irs.gov and search for IRS Publication 502 Medical and Dental Expenses.