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How Long to Keep FSA Receipts

Flexible Spending Accounts (FSAs) are a great way to save money on healthcare expenses. However, many people are unsure about how long they should keep their FSA receipts. Here’s a guide to help you understand how long to keep FSA receipts and why it’s important.

Why Keep FSA Receipts?

Keeping your FSA receipts is crucial for several reasons. First, it allows you to verify your FSA expenses and ensure that you are using the account correctly. Second, if you are ever audited by the IRS, you will need to provide proof of your FSA expenses. Lastly, keeping receipts can help you track your healthcare spending and budget accordingly.

How Long to Keep FSA Receipts?

It is generally recommended to keep your FSA receipts for at least seven years. This is the same duration as other tax-related documents. By keeping your receipts for this period, you can easily provide proof of your FSA expenses if needed.

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FAQs

1. Can I keep digital copies of my FSA receipts?
Yes, the IRS accepts digital copies of receipts as long as they are legible and accurately reflect the original receipt.

2. Do I need to keep receipts for over-the-counter purchases made with my FSA?
Yes, it is advisable to keep receipts for over-the-counter purchases as well. While some items may not require a prescription, you may still need to provide proof of purchase for audit purposes.

3. Can I throw away my FSA receipts after submitting a claim?
No, it is important to keep your receipts even after submitting a claim. The IRS recommends keeping them for at least seven years.

4. Should I keep receipts for FSA purchases made with a debit card?
Yes, it is essential to keep receipts for all FSA purchases, regardless of the payment method used.

5. Should I keep receipts for FSA expenses that were not reimbursed?
Yes, you should keep receipts for all FSA expenses, whether reimbursed or not.

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6. Can I use my FSA for cosmetic procedures?
No, FSA funds cannot be used for cosmetic procedures unless they are medically necessary.

7. Can I use my FSA for gym memberships?
Generally, gym memberships are not considered eligible expenses for an FSA unless they are prescribed by a healthcare professional as part of a medical treatment plan.

In conclusion, keeping your FSA receipts for at least seven years is highly recommended. It ensures you have proof of your expenses, helps with budgeting, and provides documentation in case of an audit. Remember to keep both digital and physical copies of your receipts, including those for over-the-counter purchases. By doing so, you can confidently manage your FSA and maximize its benefits.
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