Do you have a Health Savings Account (HSA), Flexible Spending Account (FSA), or Medical Savings Account that you are paying into for this year’s dental and medical expenses? Most who do, are able to use their money aside for orthodontic costs with no tax penalties. That’s right…when you’re paying into your HSA or FSA, you’re able to avoid income tax on the final dollar amount that you invested! However, with an FSA you actually lose the money you do not use. We’d love to help you use those funds and avoid the income tax or before you lose it. So, give us a call to make a payment. And as a reminder if you pay off your account you get 5% off your remaining balance.
What Are FSA’s And HSA’s?
A flexible spending account (FSA) is an account that allows you or your employer to set aside tax-free money to put toward medical or dental expenses. Usually, FSA funds expire at the end of the calendar year. A healthcare savings account (HSA) also allows you to set aside tax-free money for healthcare or dental expenses, but is designed for long-term savings. As a result, the funds rollover year to year. Health Savings accounts cover treatment up to your maximum HSA balance. For individuals you are allowed to contribute up to $3,300 of your pre-tax income towards your HSA each year. For families, you’re allowed amount goes up to $6,500 in contributions per year. Both HSA’s and FSA’s have specific rules for spending the money that has been contributed. So, check in with your bank, or the human resource director at your workplace, and they can help you figure out the details of your FSA or HSA.
What Does My HSA Cover?
So, what orthodontic treatment does your HSA/FSA cover? Per the IRS, the types of dental treatment that can be covered are outlined in a clause under publication 502:
“You can include in medical expenses the amounts you pay for the prevention and alleviation of dental disease. Pre-treatment includes the services of a dental hygienist or dentist for such procedures as teeth cleaning, application of sealants, and fluoride treatments to prevent tooth decay. Treatment to alleviate dental disease include services of a dentist for procedures such as X-rays, fillings, braces, extractions, dentures, and other dental ailments.” On the same document is a category that shows “What Expenses are Not Included” which includes elective procedures such as teeth whitening. Orthodontics is considered as restoration and treatment of dental problems and not a cosmetic procedure; like veneers or whitening. So, you can typically plan on the funds being approved to cover your orthodontic bill.
Braces and Clear Aligner treatment is not only physically transformative, but also is so important to oral health and functionality. If you have a FSA or HSA, we want to help you take full advantage of it. Whether you are currently in treatment or if you are looking to start treatment, we can help. We want to personalize your financial options in the same manner that we personalize your treatment with us. Call us at 775-674-1444 if you would like to see how you can use your HSA/FSA funds towards your treatment. If you are interested in staring treatment you can SCHEDULE a free consultation, to see how we can help you use HSA/FSA funds to fit your budget in addition to our zero down and zero interest payment plans.