Thursday, December 9, 2010


Check your flexible spending account balance. You must use all funds by December 31 if your employer has not adopted the 2½-month grace period that the IRS now permits. If you are in this situation, any money remaining in your account is forfeited.

Also remember to purchase over-the-counter drugs this year. For purchases after 2010, flex plans and HRAs can’t reimburse the cost of such medications. Payments will be allowed for prescriptions and insulin only. The same is true for payouts from health savings accounts.

Even if your FSA used the March 15th grace period, be aware that does not give you an extension to purchase over the courter meds. (If your flex plan uses a debit card, you have until January 15, 2011 to make the purchase.)