Each year that we’ve had the blog, I’ve written a post about benefits and open enrollment. I find the topic completely fascinating and love to dive into my own benefits to see what I can take advantage of. In anticipation of this being the year I’d be pregnant (which ended up being true!) I did a lot of extra research last year into my health plans. I also decided to opt into my company’s Flexible Spending Account option. It ended up being a huge money saver for me during pregnancy and looking ahead, I can already see how the benefits will stack up in the years to come.
What’s an FSA Account?
I covered this extensively last year in this post. But here are the basics: you can contribute pre-tax dollars to a bank account that is then used to pay for health expenses for you and your family throughout the year. You do not have to pay tax on the money as you use it, so it can be a huge cost saving for your family if you have a lot of health-related purchases.
How Much to Put in the Account for Pregnancy
This is very dependent on your own situation, but I’ll share what I decided to do. Since I knew this would be an expensive health year for us, I decided this was the year to do it! You need to check into your plan specifically, but my employer lets you roll $500 over to the next year if you don’t spend it. And knowing that I’d probably be able to spend at least $500 during pregnancy, I felt comfortable putting $1000 into my account for 2019. I also did my best to estimate what purchases I could use it if we didn’t end up getting pregnant. My insurance covers a lot of my medical bills so I spent very little of my money at the hospital. But I’ve been able to spend a lot more of the money on things for baby and postpartum than I’d anticipated or expected (see detailed lists below). By the end of this year, I will not have used my full $1000, but I have already surpassed $500 so because of the specifics of my account, the rest will roll over for me to use next year.
Things to Keep in Mind
Be sure the items you are buying quality. I found it really easy to add my FSA debit card to my Amazon account and directly pay for purchases rather than submitting for reimbursement. That being said, you have to be sure the item that you are selecting is marked as “FSA eligible” in Amazon’s system. Otherwise, it won’t charge the FSA card you have on file.
If you forget, you can submit for reimbursement after the fact. It isn’t the easiest process, but it can be done! If you use the wrong card to pay for a medical expense, you should be able to log into your account and submit the paperwork to get that amount reimbursed.
Be sure you use all of the money that you need to if it won’t rollover. Keep a careful eye on your spending in this account especially if you are nearing the end of the year. For me, I can only rollover $500 from year to year so I want to be sure that I don’t have more than that amount sitting in my account because otherwise, I’ll lose it. At the bottom of the “what to spend it on list” I put a few everyday items and also some big-ticket items that you can use those funds on if you really need to spend it before you lose it!
What To Spend It On
I am going to break this down into categories depending on what part of pregnancy/babyhood you are in.
Getting Pregnant
From the very beginning, there are some very useful items that you can start using this account for.
- Acupuncture Appointments and/or Co-pays
- Pregnancy Tests
- Ovulation Trackers
- Thermometer
During Pregnancy
-
Doctor’s Visit and Prescription Co-pays
-
Acupuncture + Chiropractor Appointments and/or Co-pays
- Sunscreen
Postpartum
Breastfeeding and Returning to Work
- Double Electric Breast Pump (this could be covered by insurance, so check first!)
- Manual/Travel Breast Pump
- Breast Milk Storage Bags
- Nursing Pads
- Pumping Bra
-
Heating Pad / Ice Pack for Breastfeeding Relief
Things for Baby
Once the baby is born, their needs are covered too! And a fun fact, you can also use this FSA account card when using your registry completion discount, it will just apply payment from that card to your eligible purchases – stack the savings!
-
Co-pays for Pediatrician Appointments
- Saline Spray Drops
- Boogie Wipes
- Baby Sunscreen
Things for Older Children
I don’t have older children yet, but the wheels are already turning for how to maximize this kind of account down the road.
Still Have Money Left? Check Out These Big Ticket Items:
If you have a lot of money in your account to spend before it expires, consider some of these big-ticket items that qualify.
And Some Smaller Purchases for Every Day:
If after all that you still have money to spend in your account, here are a few great things you can use those tax-free dollars for!
- First Aid Kit for Your Car
- Eye Care: Contact Lens Solution, Glasses Wipes, Eye Drops
- And so much more!
I’ve bought a ton of these items myself and know I’ll be spending the money on many more during the rest of this journey. The amount you save really depends on your tax bracket, but it should be financially beneficial no matter what your situation is!
Has anyone else utilized an FSA account during pregnancy and/or with an infant? Let us know what you used it for in the comments!