How to Use Your FSA/HSA for Prescription Glasses
It might sound like accounting jargon from your friend who’s a CPA, but most people either already have or can create an FSA (flexible spending account) or HSA (health spending account) to use on qualifying medical purchases. An FSA and HSA are types of designated spending accounts set up through your employer or medical insurance to cover IRS-qualifying medical expenses—including, yep, you guessed it, prescription eyeglasses and sunglasses.
Read on for the low-down on updating your vibe and caring for your vision by making the most of your FSA or HSA.
Difference Between FSA and HSA
FSA and HSA sound like the same thing, but their subtle differences are helpful to know before setting yours up or proceeding to use it. An FSA is an employer-sponsored spending account available to those whose employers offer them and don’t require a specific health insurance plan. HSA’s, on the other hand, do require enrollment in a specific health plan—typically with a higher deductible. FSAs also have a lower contribution limit than HSAs, and FSA funds often are set up to expire by the end of the year, making them sort of a “use or lose” situation. HSAs are managed directly by you, and your funds can be invested, while FSAs cannot and are managed by the employer.
How to Set Up an FSA or HSA
You can open an FSA by checking to see if your employer offers it during open enrollment and then choosing the amount to contribute to the account during the year. Contributions are made through deductions from your pre-tax income—there’s that CPA jargon again.
Since an HSA first requires a specific, high-deductible health insurance plan, you’ll need to verify your plan type. If eligible, you can open an HSA through a qualifying bank.
Buying Glasses and Sunglasses with Your FSA/HSA
Now, the fun part: To use your funds on FSA or HSA-eligible glasses, explore our collection of RX-ready sunglasses and purchase as you usually would, then go through the reimbursement process through your spending account by filing a claim with your employer. Once filed, look out for a tax-free check in the mail to reimburse you for your qualified prescription eyewear purchase. It’s as easy as that.
Keep in mind there are deadlines for filing your reimbursement claims, so keep on top of the guidelines around the FSA or HSA you’ve set up, and don’t forget to take advantage of any grace period there might be for unused FSA funds.
