Flexible Spending Accounts (FSAs) allow employees to make tax-free contributions for various medical or dental expenses. Distributions are free, provided they are used for qualified medical expenses. In most cases, you can use your FSA for non-cosmetic dental procedures.
Basic Takeaways
- In tax year 2023, the maximum FSA contribution level was $3,050, with a carryover amount of $610.
- For tax year 2024, the FSA contribution level increased to $3,200 and the carryover amount increased to $640.
- An FSA is a “use it or lose it” benefit. You lose the money in your account if you don’t spend it by a certain date.
- Anything related to cosmetic dentistry is not automatically covered by an FSA.
- Dental reimbursement is not eligible if you have a dependent care FSA (another type of FSA offered by employers).
FSA dental expenses included
When it comes to using an FSA for dental expenses, the reimbursement rules generally follow the deduction rules as set forth in IRS Publication 502. The basic guideline is that anything that treats or prevents a dental disease is eligible for FSA coverage:
- Dental cleaning
- Fillings and sealants
- Crowns
- Weld
- Dentures
- Tooth extraction
- Inserts and inserts
- All diagnostic and preventive services
- Treatments for gingivitis, temporomandibular joint syndrome and disorder, gingival recession and necessary oral surgery
FSAs can vary depending on your employer’s plan sponsor, so if you’re unclear about whether or not a procedure is covered, it may help to contact HR or the sponsor and review your policy carefully.
FSA-Exempt Dental Expenses
Unfortunately, cosmetic procedures—such as teeth whitening, veneers, and cosmetic orthodontics—are not covered by FSA. If you want to make your teeth bright and white, you will have to pay out of pocket, as cosmetic dentistry is not on the list. You can’t even buy toothpaste of any kind or dental floss using your FSA funds, as they are not eligible expenses. Oral pain treatments, however, are usually covered by plans.
Orthodontics is usually covered, but there are cases where it can be considered cosmetic. The IRS says some procedures treat disease and some are cosmetic. In general, the most common medical uses of orthodontics are covered, such as correcting teeth with braces. Your orthodontist should be able to help you determine what your plan may cover.
FSA Limitations
Flexible spending accounts are limited because you can only contribute a certain amount per year. The limits are:
- $3,200 per employee contribution for tax year 2024, up from $3,050 in 2023.
- If allowed, a carryover of $640 per year per employee for tax year 2024, up from $610 in 2023.
- A use-it-or-lose-it rule, where you have a two-and-a-half-month grace period after the end of a plan year in which to use remaining funds.
- Employers can only offer one and not both of the grace period and the transfer of funds.
- Any money that remains unused is sent back to the employer.
If you have a universal health FSA, you can use it for all of your qualifying medical expenses. A limited purpose health FSA can only cover dental and vision expenses.
Can I use my FSA for oral surgery?
Necessary oral surgeries are generally included in FSAs, but it’s best to check with your policy provider to find out.
Can I use my FSA for braces?
You can often use your FSA to supplement any part of your braces treatment that is not covered by dental insurance.
Does the FSA cover Dental and Vision?
Office visits and preventive expenses can be paid for using your FSA. Anything that treats illness or disease can also be paid for using the FSA. So, the answer is, broadly speaking, yes. Again, check with your policy provider or employer to verify what you can and cannot do.
What are the different types of FSA accounts?
There are three types of FSAs: a (general) health care FSA, a limited health care FSA, and a dependent care FSA.
The bottom line
The IRS provides general rules for FSAs, but each FSA provider interprets these rules differently. Talk to your employer and plan provider before starting any course of treatment. Your dental office should be willing to coordinate with your insurance provider to make sure the services you receive are covered by your FSA.
