The answer: it depends.
As the coronavirus (COVID-19) outbreak continues, many may be wondering which items are reimbursable by their Flexible Spending Account (FSA), and it is not always obvious which expenses their Flex plan classifies as eligible. In order to maximize the tax-advantaged savings of your FSA, let’s explore which healthcare related coronavirus expenses are eligible for reimbursement.
The IRS determines which expenses may be reimbursed by FSA plans.
Common FSA eligible expenses include:
- Dental and vision expenses
- Both over-the-counter and prescription medications.
COVID-19 Related Expenses
Useful eligible items include:
- First aid kits
- Steam vaporizers
The FSA Store has created a list of FSA eligible items to help prepare for viral outbreaks.
PPE Now FSA Eligible – Announcement 2021-7
This announcement notifies taxpayers that amounts paid for personal protective equipment, such as masks, hand sanitizer and sanitizing wipes, for the primary purpose of preventing the spread of the Coronavirus Disease 2019 (COVID-19 PPE) are now FSA eligible and are treated under § 213(d) of the Internal Revenue Code (Code).
It is important to note that each FSA plan is unique regarding what qualified expenses will be reimbursed, so consult your Summary Plan Description (SPD) to know which expenses your plan deems eligible.
We know how difficult it is stay on top of constantly changing regulations. BASIC does the hard work for our clients by providing them with summary communications and continuously updating their benefit plans to reflect any changes in new legislation. BASIC benefit experts make sure our clients’ plans are not only compliant, but designed in a way to maximize the utility to their participants.