A flexible spending account (FSA) is a popular employer-sponsored benefit that allows you to set aside part of your pre-tax paycheck for qualified medical expenses. You can use this tax-advantaged account for everything from doctor's visits to insurance co-pays. But did you know it also covers a wide range of over-the-counter health products?

The IRS has a comprehensive list of purchases that count as qualified medical expenses. So where do condoms fall on that list?

Purchasing Condoms with Your FSA

In the past, products like condoms and general sexual health products weren't covered by flexible spending accounts. But that all changed with the CARES Act. Now, you can use your account to buy menstrual care products, birth control, condoms and more.

Condoms are an essential care product for those who are sexually active. While many health care providers agree that other contraceptive methods are best for avoiding pregnancy, condoms can prevent STDs and STIs. Fortunately, you can purchase condoms with flexible spending and health savings accounts.

Should You Use Your Flexible Spending Account?

Condoms are relatively affordable, so why use your tax-advantaged account to buy them? Ultimately, using these accounts lowers the cost of condoms and other covered purchases even more. Because contributions are pre-tax, federal income taxes don't apply to that amount. Furthermore, you can exclude contributions from your gross income, allowing you to lower your tax liability.

Another major benefit of a flexible spending account is that withdrawals are tax-free if you use it to pay for qualified expenses like condoms.

Unlike health savings accounts, your contributions typically don't roll over into the next year. There's a limit to how much of your pre-tax income you can move into the account, and you must spend it before the end of the year. Some employers may offer grace periods or extensions, but these accounts are more of a "use it or lose it" scenario.

As a result, many people use their spending accounts as much as possible. Purchasing drugstore items like condoms is a great way to make the most of the account and help you use your contributions before the end-of-year expiration.

Author Resource:-

Daniel Stewart has been helping people with their money management and personal finance with over 15 years’ experience in business finance. You can find his thoughts at healthcare trends blog.