Daniel Stewart

Can You Pay for Diapers With an FSA Card?

Flexible spending accounts (FSAs) are a fantastic benefit many employers provide. They help people save money on qualified medical expenses and products. If you're a parent, you may wonder if you can use your FSA to pay for diapers and other essentials.

FSAs are more flexible than most realize, giving you plenty of ways to use your funds before expiration. Keep reading to learn about diaper eligibility.

What is an FSA?

Before we get into qualified expenses these accounts can cover, what is an FSA?

FSAs are employer-sponsored accounts that allow you to set aside pre-tax dollars to pay certain healthcare expenses. Employers can set up FSAs in many ways, but the IRS is the entity that designates which items you can use your FSA on and what you can't. These accounts are tax-advantaged and can provide considerable savings.

Qualified expenses include usual items like doctor's visits, prescription medications, specialist care, etc. However, you can use them on many over-the-counter products at your local drugstore. Many stores have shelf labeling to make it easier to find eligible items, but the list of products you can use your FSA on is exhaustive.

FSAs and Diapers

Diapers are a recurring expense you'll have to buy for at least the first several years of your child's life. The average parent spends up to $80 on disposable diapers every month. That adds up quickly.

But what about FSA eligibility?

Unfortunately, diapers for infants and babies are not qualified medical expenses. You can use your FSA card on other care products for your child. For example, thermometers, nose wipes and sunscreen are all eligible.

However, diapers are not.

The Exceptions

A couple of exceptions exist when using your FSA to pay for diapers.

The first is medical necessity. If your child uses diapers due to symptoms of a disease or medical condition, you may be able to use your FSA. But before that happens, you must provide a Letter of Medical Necessity from your child's pediatrician or health care provider.

Another exception is training pants. Toddler training pants and nighttime underwear do count as qualified medical expenses. While you can't use your FSA to buy baby diapers, you can purchase similar products as your child goes through potty training.

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 invest HSA blog.