I retired in September and had $300 left in my Flexible Spending Account. I just got a notice saying that I should submit more bills to get what’s left. I don’t have any medical bills, but I have been paying for my Medicare insurance – the hospital part and the drug card. Will the FSA pay for these?
Dear New Retiree,
Yes, you can pay your Medicare Part B or Part D premiums using funds from your Flexible Spending Account (FSA). Yours is an unusual situation. Most people who have an FSA would not need Medicare Part B and Part D, since the employer plan covers hospital services and prescription drugs. Nevertheless, it is an allowable expense. See IRS Publication 502 for a complete list of expenses that an FSA can pay.
So send in your premium notices to your FSA and get the rest of your FSA funds!