Flexible spending accounts (FSAs, also known as flexible spending arrangements) are special savings accounts that can be set up by your employer. They can be used to pay for certain approved services and provide you with a number of tax advantages. You can set aside part of your regular income in a FSA as well as your employer’s contributions if they are paid.

You can use FSAs to pay for qualified child care for children under 12 and eligible adults. They can also be used to reimburse you for eligible dental and medical expenses. Fortunately, LASIK surgery may be covered if your eye doctor determines it is medically necessary.

Is LASIK a qualified medical expense?

A qualified medical expenses means any cost paid for the diagnosis, treatment, cure or prevention of a disease. Costs include payment for services rendered to physicians, surgeons, dentists and other medical specialists, as well as those paid for equipment, supplies and other products. Health insurance premiums and transportation costs to get to and from your medical care are also considered eligible medical expenses.

If you’re considering laser eye surgery and want to use your FSA to pay for it, you’re in luck. According to the Internal Revenue Service (IRS), it may be considered a medical expense for an FSA. To benefit from it, you must make an appointment with an ophthalmologist to determine if the procedure is medically necessary.

This means that you can use the distributions from an FSA to pay for eligible LASIK procedures. LASIK is one of the most popular laser eye surgery procedures in the United States. It is used to correct eye and vision problems using laser refraction techniques. People undergo the procedure to correct nearsightedness, farsightedness and astigmatism. Keep in mind, however, that LASIK is just a brand name. There are other similar procedures that you can opt for according to the FSA guidelines.

Pros and Cons of a Flexible Spending Account (FSA)

There are many advantages and disadvantages to owning and using a FSA to cover your medical and dental expenses. Here are the most common pros and cons.

Benefits

• You can use your FSA for other vision-related expenses, such as glasses, contact lenses, eye exams, and visits to the optometrist.
• FSA funds are taken out of your pre-tax paycheck, saving you money on expenses you’d pay for anyway. It also reduces your taxable income at the end of the year.
• FSAs are only available through employer-sponsored health plans, which means employers can contribute as well.

Disadvantages

• FSA funds must be used before the end of the calendar yearor they will be confiscated for the benefit of your employer. Employers may provide a grace period of up to two and a half months after the end of the plan year for employees to use their remaining FSA funds.
• Some employers may not provide a grace period for their employees’ FSAs. Indeed, it is up to them whether they offer one and, if they do, how long it lasts.

Plan Ahead to Use an FSA for LASIK

According to the Refractive Surgery Council, the cost of LASIK procedures depends on location. However, the average cost is typically $2,200 per eye.

The procedures are considered optional operations. An ophthalmologist can provide you with an estimate of the cost of your procedure. FSA contributions are capped at a maximum of $3,200 for 2024 and $3,300 for 2025. By delaying the procedure, you may have less personal expenses.

LASIK is not covered by medical insurance. If you have a vision insurancethis may only give you a small discount on the transaction. This leaves your FSA as the only way to pay for LASIK, unless you pay from my pocket or take away a medical loan.

The essentials

Using your FSA to pay for LASIK surgery can be a smart use of your pre-tax healthcare funds, as long as you plan ahead and get a medical diagnosis from your eye doctor first. Even if you end up paying for part of the procedure out of pocket, you won’t risk losing your FSA funds at the end of the year.