Introduction
A FSA or fixable spending account is an account that is funded through pre-tax deductions from
your paycheck. Cash From FSA Card & Return FSA Items For Cash these accounts are usually offered as part of the employment benefit packages
and some employers contribute to employees fixable spending accounts.
Answer To Cash From FSA Card & Return FSA Items For Cash
In simple terms, a person is unable to receive cash from the fixable spending account,
irrespective of the amount of money in said account. The Internal Revenue Service has a strict
set of rules that have to be followed by holders of a fixable spending account.
Holders of the fixable spending account can return items from drug stores or any health-related
items for cash, however, this depends on the heath store that said items were purchased from.
Some retailers may return items for store credit, or directly refund the money to the consumers
flexi card.
Functions of a fixable spending account
Health care – one of the main functions of a fixable spending account is health care for
employees. According to my research, the standard contribution to the fixable spending
account id $2600.00.
The fixable spending account does not cover all medical expenses. Majority fixable
spending accounts cover dental care and eye care only.
The fixable spending account can also be used for dependent care. According to my
research, the contribution thereto is approximately $5000.00. Dependents may be
considered as children under the age of 13, a spouse or a relative with disabilities (physical
or mental).
What happens if a fixable spending account card is used for non-approved purchases?
Some stores have systems that keep track of the approved products. When a consumer
tries to purchase a product that has not been approved, the system automatically rejects the
product and the consumer then has to purchase said product desperately. Sometimes a
consumer may mistaken their debit or credit card for the fixable spending account card and
purchase non-approved items. These purchases need to be reported and according to
research a 20% (twenty percent) penalty will be charged for said purchase. These activities
could result in fraud charges being pursued against you, if the mistake is not reported.
Employers may notice a consumer spending money on non-approved items and have the
right to deactivate the card if said card is being abused. You may also have to repay your
employer for improper purchases. If you fail to do so, your employer may legally deduct the
amount owing from your paycheck at the end of the month. Your employer then has the right
to decide whether or not to re-activate your fixable spending amount card.
What are approved purchases on a fixable spending account card?
There are a wide range of health care items that can be purchases on the fixable spending
account. According to my research, these include but are not limited to:
Dental care treatments – braces, medical procedures to remove teeth or any dental
hygiene procedure that is within budget range.
Eye care – new spectacles, contact lenses or any eye surgery that is required and
within budget range.
Over the counter medication within budget include but is not limited to acne and
skincare creams or medication, ointments and creams, allergy and asthma relief,
baby care products, breathing care, cold and flu relief, diabetes medication, etc.
Ear care treatments within budgets.
Fertility and menstrual care in the form of pregnancy tests, ovulation kits, pads or
tampons. The fixable spending account does not cover extensive fertility treatments
such as in vitro fertilization or similar procedures.
Support braces, minimal pain management care as well as mobility assistance.
Where can a fixable spending account card be used?
Grocery stores including but not limited to Costco, Target, Walgreens and Walmart.
Drug stores and hospitals
FSA approved stores.
Conclusion
After going through the above, it is imperative to understand a fixable spending account
can benefit the receiver does not abuse the card by using it for non-approved products. It
is also important to understand that if the holder of the card abuses the card, there will
be consequences. My suggestion is that the card holder does not overuse said card and
stay within budget range to avoid any problems that may arise in the future.
Frequently Asked Question’s
- Are taxes paid on money in an FSA?
No, you pay into an FSA before tax deductions, meaning tax is not paid on the
money that is paid into the fixable savings account. - Do you have to use the money in your FSA during an annual term?
Yes, however, a grace period of 2 ½ months are provided in order for card holders to
use the money, and a carry-over of $550 is allowed annually.
