Use It or Lose It
If your employer offers a flexible spending account, you can save money by setting aside pretax dollars for health-related expenses such as copays, deductibles, and dental care. You elect how much to contribute ($100 to $2,850 for the 2022 tax year) — but you have to spend it all, or risk losing it at the end of the year. Americans who have put off routine health visits and procedures during the pandemic may have leftover money in their FSAs that will go to waste if unused. Although it depends on the company, the standard deadline is Dec. 31, and the maximum that can be rolled over into 2023 is $571. The good news is that the federal government has made more items eligible for purchase with FSA money in recent years. Here are some often-overlooked essentials and useful "extras" you can buy with that use-it-or-lose-it cash.
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