What expenses are eligible under Flexible Spending Accounts?
In general, almost everything needed for medical, dental, or vision care is eligible. Under your group plan, the insurance company pays for a much more restrictive list of items, and has reasonable and customary limitations. This is not true under FSA’s. The list of eligible services, as denoted by IRS Publication 502 applies. See www.irs.gov/pub/irs-pdf/p502.pdf. Some examples are travel and parking costs, over the counter drugs as long as they are for an illness or condition, Lasic surgery, and all dental care except teeth whitening. Capital expenses like air conditioning costs for allergy or asthma sufferers, mold removal, and even hot tubs for those with orthopedic conditions are all eligible. Examples of things which are not covered are purely cosmetic items, preventive medications like vitamins, and personal use items such as toothpaste and shampoo. The bottom line is that almost all of us have significant expenses in this area and we are not taking advantage of the tax deduction
