Understand FSA for Orthodontics: Save Money and Get the Perfect Smile
Are you considering orthodontic treatment but are intimidated by the process or price tag? You’re not alone! Orthodontics can be a big financial undertaking, leaving many wondering how to pay for it. If you are in this boat, have no fear; there is an option that could make financing your treatment more manageable: an FSA (Flexible Spending Account).
We will discuss everything you need to know about FSA for orthodontics so that, come the time for braces or aligners, you can rest assured knowing affording them won’t be as stressful as you had originally anticipated.
What is FSA?
Flexible Spending Accounts, also known as FSAs, are a type of saving account that allows employees to set aside money to pay for medical and dependent care expenses on a pre-tax basis. The money contributed to an FSA is exempt from federal income tax, social security tax, and most Medicare taxes. This means the employee’s taxable income is reduced, resulting in a lower tax liability.
With an FSA, you can pay for eligible healthcare expenses, including orthodontic services such as braces and retainers, without having to dip into your regular paycheck or other savings accounts. All in all, an FSA makes taking care of your teeth easier and more affordable.
How does a Flexible Spending Account work?
An employee contributes a certain dollar amount to their FSA during each pay period. This money is then set aside and can be used to pay for eligible medical expenses throughout the year. The employer will withhold this contribution from the employee’s paycheck before the taxes are taken out so that the employee benefits from a reduced taxable income.
At the end of the year, any money in the FSA that has not been used for eligible medical care expenses is forfeited and returned to the employer. It is important to note that there is an annual limit on the amount of money that can be contributed to an FSA. The maximum contribution for 2023 is $3050.
Overall, FSAs are a great way for employees to save money on their taxes while also paying for necessary medical and dependent care expenses. By investing pre-tax dollars each year, you can benefit from the potential growth of your funds while lowering your taxable income.
FSA for Orthodontics: Eligibility Criteria
If you are considering getting orthodontic care with a Flexible Spending Account (FSA) as your primary payment source, it is important to understand who is eligible and who is ineligible. Typically, braces treatments last around 24 months, with an average cost ranging from $3500-$7500. This expense is different from paying for typical treatments like fillings or extractions.
FSA funds can only be used for dental expenses not covered by your insurance plan.
Nevertheless, most expenditures must occur during the current plan year to be eligible for this benefit. Understanding the ins and outs of using your FSA to cover certain orthodontic treatments can help you save significantly on dental costs while giving you peace of mind both now and in the future.
How does FSA cover orthodontic treatments?
Orthodontic treatments, such as braces, retainers, and headgear, are typically eligible for coverage under most FSA plans. The amount of coverage a patient is eligible for depends on the individual plan; however, some plans may cover up to 100% of the cost. Additionally, according to IRS regulations, orthodontics treatments may be eligible for tax-free reimbursement of up to $2,500 per year. To ensure the coverage available with your plan, you should contact your FSA administrator or employer.
It’s important to note that many orthodontic procedures require multiple visits spread over several months or even years. If you anticipate needing orthodontic treatments, it’s best to plan and budget for the expenses incurred throughout the treatment plan.
Finally, don’t forget to keep your receipts from any orthodontic appointments and procedures. They will help you file a reimbursement claim from your FSA plan. If you have additional questions about how your FSA covers orthodontic treatments, it’s best to contact your plan administrator for guidance.
FSA for Orthodontics: Documentation Requirements
If you are going to use your FSA funds for orthodontic treatment, certain documentation requirements must be met for the expense to be eligible for reimbursement. For payment in full claims, submit documentation from the orthodontist showing the name of the person receiving the treatment, the beginning date of the treatment, the contracted amount, and the amount you paid. Credit card slips, bank statements, or canceled checks are invalid documentation under the Internal Revenue Service (IRS) rules.
Documentation for lump sum payment plan
In case you are paying for your entire orthodontic treatment in one lump sum upfront. You will need to submit documentation showing the name of the person receiving the treatment, the beginning date of the treatment, the contracted amount, and the amount you paid.
Ensure that this supporting documentation is from your orthodontist and not a credit card slip, bank statement, or canceled check – these documents are not accepted under IRS rules.
Documentation for monthly plans
If you are opting for a monthly payment plan with your orthodontist and are using an FSA to pay for part of it, the documentation from your orthodontist must include the name of the person receiving the service, the beginning date and ending date of the treatment, the total contracted amount, scheduled monthly payment amounts, and any amounts that have been paid thus far. This documentation should be submitted with your first claim.
Conclusion: Embrace Orthodontics
The Flexible Spending Account (FSA) for orthodontics is a great way to get the treatment you need and save money at the same time. With Embrace Orthodontics, FSA members can receive top-quality orthodontic care without breaking the bank or sacrificing their savings.
Furthermore, with Embrace Orthodontics’ convenient locations, finding a nearby orthodontist has never been easier. So if you are looking for an affordable way to get the smile you deserve, don’t forget to take advantage of your Flexible Spending Account! Act now and contact your local Embrace Orthodontics Clinic to book a free appointment for you or your family today.
