FSA and HSA Vision Resources
Flexible spending accounts (FSAs) and health savings accounts (HSAs) contain money that you put aside to pay for medical- and vision-related costs throughout the year. You do not pay taxes on the money you contribute to an FSA or HSA. The funds are taken directly out of your paycheck every pay period.
Most people can expect to save about 30 cents on every dollar they deposit into one of these funds because you do not have to pay federal, Social Security or sometimes even state taxes on the money you contribute to an FSA or HSA.
These accounts can be used to pay for a wide variety of medical expenses, including the following vision products and services:
Eye exam copays
Contact lens solution
FSA vision benefits
A health care flexible spending account is usually associated with a PPO (preferred provider organization) health insurance plan. In 2020 and 2021, you can contribute up to $2,750 annually to your FSA.
The total amount of your FSA is available on the first day of your plan year to use toward vision and other qualified medical expenses, though you make contributions throughout the entire year. The plan year typically starts on January 1 and ends on December 31, unless your employer offers a grace period or rollover amount (up to $550 in 2021). You can redeem FSA dollars with an FSA debit card or by manually submitting receipts to your provider.
HSA vision benefits
A health savings account is attached to an HDHP (high-deductible health plan). In 2020 and 2021, you can contribute an annual maximum of $3,550 (individual) or $7,100 (family) to an HSA.
An HSA is similar to an FSA, but you have more control over the funds. They allow you the freedom to roll over all your leftover money from year to year or to a new job.