FSA and HSA Reminders for LASIK and Other Vision Correction Procedures and 2022 Spending Updates on FSAs from the IRS

LAS VEGAS, Jan. 11, 2022 (GLOBE NEWSWIRE) — Trusted LASIK Surgeons is pleased to provide updates for Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs). FSAs and HSAs are both pre-tax accounts that can be used to pay for healthcare-related expenses, including co-pays, medical bills, and vision-related expenses. Paying with an FSA or HAS is a great option for those considering LASIK, cataract surgery, or another vision correction procedure.

FSAs operate on a “use-it-or-lose-it” basis. Any funds in an FSA not spent by the end of the year can be lost unless the plan includes a rollover feature. While FSA benefits typically need to be spent by December 31, employees may be able to carry over unused funds from 2021 to 2022 if management has opted into these options.

The IRS published adjusted tax limits for FSAs in Revenue Procedure 2021-45.   The limit on annual employee contributions toward health FSAs for 2022 increased to $2,850 (from $2,750 in 2021) which also included the ability to carry over up to $570 in 2022 (which was $550 in 2021). 

If employers provide health care FSA contributions, such amounts are in addition to the amount that employees contribute. Employees can elect up to the IRS limit and still receive the employer contribution. The IRS places the following limits on the amount of the employer’s contribution to a health FSA based on how much the employee contributes: $500 (whether or not the employee contributes to a health FSA and beginning at $501, the employer can only match on a dollar-for-dollar basis to the employee’s contribution.

As part of COVID-19 relief, the Consolidated Appropriations Act, 2021, signed into law at the end of 2020, and IRS Notice 2021-15, issued in February 2021, employers can offer the following to participating employees: (1) unused balances from plan years ending in 2020 and 2021 may be carried over to the the next applicable plan year; (2) a 12-month extension of the grace period for spending unused FSA funds for plan years ending in 2020 or 2021; and (3) employees who stopped participating in their health FSA plan in 2020 or 2021 may continue to be reimbursed from any unused balances through the end of the plan year in which their participation ended (which may include any extended grace periods).

While funds in your HSA roll over automatically each year, it is important to be aware of the utility and the significant benefits of an HSA, including tax savings and the ability to use it as an retirement investment account.

Trusted LASIK Surgeons™ emphasizes providing consumers with ways to affordably access vision care, which is why it issues yearly reminders regarding FSA and HSA benefits and has discussions to help save consumers money like the True Cost of LASIK.

Trusted LASIK Surgeons™ is an online business that provides LASIK and Cataract Surgeon directories and consumer resources concerning eyesight and vision correction. They can be reached online or over the phone at (844) DOC-4EYE.