How to Maintain Good Flexible Spending Account Records
Flexible spending accounts, FSA's, are a way to save money on your medical expenses. These accounts allow your employer to take money from your pay before taxes and deposit with a third-party company. You then submit paperwork to this company for medical expenses and get reimbursed. The benefits are tremendous if used properly, but you have to make sure you maintain good account records.
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Instructions
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Keep all receipts. The Internal Revenue Service requires all participants in medical flex accounts to produce records if needed. The easiest option is to get a large plastic envelope with a clasp and put all receipts immediately into it.
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Consider a debit card. Many major plans offer debit cards. They work like a regular debit card but should be used only for flex spending. At many stores, the card only accepts redeemable charges, so keeping receipts is not necessary.
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Make a spreadsheet. A simple Excel spreadsheet for your medical flex account allows you to create a tab for each person in your family and to input any expenses and what they were.
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Print out your policy requirements. While many over-the-counter items, such as nasal spray, are covered, they are included only if your doctor writes a note for them. Keeping up with the current permitted expenses will make your record-keeping much smoother.
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Tips & Warnings
Even if you don't have to keep receipts, doing so until the end of a benefit period is a good idea in case your benefits company asks for proof of medical purchases.
