I recently had a doctor’s appointment, and when it came time to pay the copayment, I pulled out my FSA card. In true girl math fashion, it felt like the appointment was free. But in all seriousness, having an FSA has helped me take better care of myself because I know I already have the funds set aside for any visit, item, or expense.
When I first entered the workforce, I didn’t even know what an FSA was, let alone if it was worth it since it takes money out of your paycheck. In my first year, I think I only contributed $500, which I used up entirely at my eye appointment. Fast forward a few years, and now I’m maxing it out annually. This shift wasn’t just about spending more; it was about truly understanding the potential of this pre-tax benefit.
Ever wonder how to make the most of your Flexible Spending Account (FSA) each year? As someone who consistently hits the FSA ceiling—this year’s limit is $3,200—I’m here to share my insights and strategies. Maximizing your FSA isn’t just about spending; it’s about smart financial planning and leveraging what I believe is one of the most underrated benefits in the corporate world.
I also have to admit, I’m low-key obsessed with seeing what other people buy with their FSA. It’s like peeking into someone’s health shopping cart! In my early twenties, I googled this topic so much it’s embarrassing. So consider this post my gift to my younger self (and to you) – a fun but informative dive into the world of FSA spending.
Why Maximize Your FSA?
- Tax Savings: Every dollar you contribute to your FSA is pre-tax, effectively lowering your taxable income.For simple math, if you earn $10,000 a year, your taxable income would drop to $6,800, ultimately reducing the taxes you owe.
- Forced Savings for Health: It ensures you have funds set aside for healthcare expenses throughout the year.
- Potential for Significant Savings: With careful planning, you can save hundreds on necessary healthcare costs. Those big purchases- think ambulance rides, Lasik eye surgeries, mental health therapy appointments, etc.
Disclaimer: I’m not a financial advisor. The decision to max out your FSA should align with your personal financial situation and healthcare needs. Consult a professional financial advisor for personalized guidance.
FSA Shopping List: The Essentials
Things I Buy Regularly:
- Sunscreen – Wrinkles are expensive, and in Texas, it’s sunny 365 days a year. I personally use the Supergoop sunscreen, however, there are many others that qualify.
- Eye Drops – I prefer preservative-free eye drops, and these are my go-to. They’ve become one of my favorite recurring Amazon purchases each month!
- Face wash– I purchase this for everyone in my family! It has a gentle formula that cleanses the skin without stripping it too much, so your skin doesn’t have that weird papery feeling afterward. Out of all my FSA purchases, this is the one I’d buy even without the FSA money—it’s that good!
- Body wash
- Body scrub
- Daily face moisturizer– This is my favorite moisturizer with sunscreen already in it, it is incredibly lightweight and absorbs into the skin quickly.
- Electrolyte mixes
- Callus remover – Sandal season is year-round in Texas.
- Meds: Tylenol, Zyrtec, etc. – Allergies and headaches don’t care about your schedule.
- Feminine care products
- Fiber gummies
- Vicks VapoShower tablets – A must during the colder season when my nose is blocked.
One-and-Done Purchases:
- Thermometer – For when you need to prove you’re too sick for that meeting.
- Scale
- Electric toothbrush
- Heating pad– This is the exact one I have and I have had it for four years- its amazing! I love that it automatically turns off after two hours.
- Massage gun
Turning Sephora into an FSA-Eligible Spree
Think your FSA is just for boring medical stuff? Think again! Here’s how to turn your Sephora run into an FSA-eligible spree:
- Sunscreen is Your BFF: That fancy facial sunscreen? FSA eligible. Stock up on that bougie SPF.
- Acne Products: Breakouts are a medical condition. Many acne-fighting products qualify. Clear skin, full FSA, can’t lose.
- Mineral Makeup with SPF: Some mineral powders and foundations with SPF are FSA-eligible. Think blush, lipsticks, BB creams, etc.
Pro Tip: Always ask for a separate receipt for FSA-eligible items when shopping—it’s not weird, it’s smart! And when in doubt, use your FSA provider’s app to scan barcodes.
FSA Maximization: Pro Strategies
- Plan Big Purchases: Schedule LASIK or dental work when your FSA is freshly loaded. I front-load all my appointments in the first quarter, so I know what I have left to spend on other items. Also, if your insurance doesn’t cover therapy, your FSA money will.
- Set Reminders: Don’t be the person scrambling on December 31st. Set alerts for key spending periods. Also, check if your deadline is actually December 31st. Mine is July 31st, so verify the dates with your company.
- Everyday Health Adds Up: Think beyond major expenses. Those little health purchases can make a big difference.
- FSA Store Deals: Yes, there are stores dedicated to FSA-eligible items. Browse them—you might find some surprising things that qualify!
P.S. If you’re as nosy as I am about other people’s FSA purchases, drop your favorite finds in the comments. Let’s keep this educational shopping spree going!
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