FSA: March 15 is Use it or Lose it Day

Tuesday, March 15, 2011, is your last chance to use the money in your Flexible Savings Account, also known as a Flexible Savings Arrangement (FSA). The FSA is a savings vehicle some employers offer which comes with tax-free benefits. Employees designate a percentage of their paycheck to be diverted to the FSA pre-tax. The FSA can be used throughout the year to pay for qualified medical expenses, including out of pocket medical expenses. Co-payments for appointments with doctors, dentists, specialists and prescription drugs are covered. The downside of the FSA is that if you don't spend the money socked away in your FSA account, you lose it. What happens if you don't spend it? The money goes back to your employer.

You may not have a doctor's appointment but there are ways to spend your FSA today before you lose your hard-earned money. Check with your company's plan to see if they still allow you to spend the money through March 15, 2011, as not all do.

* Pay any outstanding co-payments to doctors

* Make an eye appointment if you are due for one

* Purchase a second pair of glasses if your current Rx is less than 1-year-old

* Make a payment toward orthodontia

* Buy contact solution or eye care products.

* Replace or buy a hearing aid

* Pay for a health club membership if you have a doctor's note stating medical necessity. Check with your plan rules first, or risk having the expense denied.

* Refill birth control prescriptions

* Stock up on allergy medications.

* Fill a prescription for prenatal vitamins

* Buy a new first aid kit

* Clean out your medicine cabinet and replace approved OTC products. If you are buying an OTC pain reliever with your FSA, be sure to have a prescription from your doctor or it will not be an approved purchase in your FSA account. This is new for 2011.

* Fill any of your current prescriptions. Your prescription coverage may limit how many refills you can receive in one month (even on something as mundane as fluoride), but if you haven't filled your recurring prescriptions yet this month, do it and pay for it today using your FSA.

* Shop online for OTC product covered by your FSA. A number of websites have a separate section and label FSA-eligible products, including Drugstore.com, Walgreens.com and Walmart.com. Always double check the restrictions listed in the plan documents, which may have restrictions on which products are eligible for purchase with your FSA.