Is it time for a new pair of glasses? You may want to make an appointment before the end of the year — especially if you have money left in your Health Flexible Spending Account (FSA). You have until Dec. 31, 2024, to incur eligible Health FSA expenses (including many health-related products you purchase over the counter) for the 2024 plan year. You can carry over up to $640 to 2025 — anything over that amount will be forfeited.

Health and Dependent Care (DepCare) FSAs both let you save on your taxes by taking money from your paycheck each month to cover certain expenses, but they have different purposes, rules and deadlines. The Health FSA allows you to pay for eligible medical expenses for you and for your eligible family members. The DepCare FSA allows you to pay for eligible expenses for the care of your child (up to age 13) or eligible adult dependent while you work.

Here’s how they work.

Health FSA eligible expenses, carryover rules and deadlines

You may be surprised by how many options you have for using your Health FSA funds. In addition to the copays you owe for doctor, dentist and optometrist visits, you can use the money in your Health FSA to pay for over-the-counter medications, sunscreen, menstrual products and more. Check out an alphabetical list of eligible expenses on the WEX website.

If you are enrolled in the Health FSA through Dec. 31, 2024, you are allowed to carry over up to $640 of unused funds to the next plan year. With the carryover, if your balance is $640 or less, you do not have to worry about losing money when the plan year ends.

You have until Dec. 31, 2024, to incur eligible expenses for the 2024 plan year, and you have until April 15, 2025, to file claims for your 2024 expenses. After the April 15 deadline, unused funds up to $640 will carry over to the 2025 plan year. Unused funds greater than $640 will be forfeited.

If you did not re-enroll in the Health FSA for 2025, you must have at least $25 remaining in your account after the April 15 deadline to be able to carry over funds to the next plan year. Funds under $25 are forfeited, and you may only carry over funds (up to $640) for one year.

Your Dependent Care (DepCare) FSA grace period ends March 15, 2025

If you have a remaining balance in your 2024 DepCare FSA, you still have time to use it! WEX will use your 2024 funds for any eligible expenses you incur through March 15, 2025 — as long as you submit your claims by April 15, 2025. You cannot carry over any remaining balance from 2024 past the March 15 grace period, even if you’ve enrolled in the DepCare FSA for 2025.

Log in to your WEX account to access your FSA activity, account balance and reimbursement information.

For more details, see the WEX website and the Health FSA and/or DepCare FSA page on UCnet.

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