Daniel Stewart

Can I Buy Contact Lenses With My FSA?

Vision issues are a widespread problem in the United States. Estimates say that over 166 million people wear prescription glasses. Of that figure, about 45 million use contacts exclusively or occasionally.

Contact lenses are a fantastic way to correct your vision without the hassle or aesthetics of glasses. These ocular devices are more complex than they seem, leading to substantial costs. Whether you use extended-wear rigid contacts or soft dailies, the price of correcting your vision can be significant.

That begs the question, can you buy contacts with your FSA?

What is an FSA?

FSA stands for flexible savings account. It's an employer-sponsored healthcare benefit that many companies offer. With an FSA, you can set aside an annual contribution exclusively for qualified medical expenses. For 2022, the annual contribution limit is $2,850.

A medical FSA is a fantastic way to plan for the unexpected. But with its inherent restrictions, it's perfectly reasonable to use the funds to pay for everyday products or services you need. Despite how some people use it, you don't have to save your FSA for emergencies.

Contact Lenses and FSA

Here's some good news: Contact lenses are a qualified medical FSA expense! The same goes for prescription glasses. Many people use FSAs and HSAs to cover the cost of eye exams, new prescription lenses, fittings, and new contacts.

The IRS does consider costs associated with eye health and vision a qualified medical expense. But that's not all.

Many assume that FSAs and HSAs only work for doctor's visits or hospital stays. But that's not the case. An FSA is an account you can use for a wide range of products and services. From feminine hygiene products to cold medicine, the tax-advantage plan can cover more than most realize.

Using Your FSA

When you order new contacts, using your FSA is a cinch. Most providers have a debit card to make paying for qualified expenses easier. Use the card to save on recurring vision costs and place an order as you usually would. The payment will come from your contributions, allowing you to take advantage of tax-friendly savings.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years' experience in business finance. You can find his thoughts at HSA eligibility blog.