Q&A WITH JEFFREY COLLINS TIME IS RUNNING OUT TO USE 2017 FLEXIBLE SPENDING ACCOUNT FUNDS Q: December is one of the best times of the year to take stock of Flexible Spending Accounts (PSAs) and prepare for the upcoming year. What is an FSA? A: Some employers offer their employees the option to con- tribute a portion of their income, by way of payroll deductions, into an FSA account. The con- tributed funds are tax-free and are eligible to be used to cover afew types of expenses (hence the term “flexible”). Eligible medical expenses include doctor visits, prescription medi- cine and eyeglasses. Q: Why is planning ahead so important? A: AIL FSA participants are required to tell their employer in advance how much they want to contribute for the upcoming year. The cap for 2018 is $2,650. If contribu- tions aren't used within the allotted time, employers keep excess funds. Q: How long do employees have to use the money they contribute? A: Normally, employees only have a year to use contributed funds. If an employer's plan allows it, how- ever, up to $500 can be carried over to the next year. Q: What should employees do if they have unused funds for 2017? A: It's important for FSA account holders to review how much is left in their account and find out whether their plan allows carry-overs into the next year. If there's a balance, they should check with their health insurance plan to see where they are regarding deductibles and determine if there are medical proce- dures that could qualify for an FSA reimbursement. It's often possible that if people plan carefully, they find that between the deductible they've already used and the amount they have left in their FSA, year-end pro- cedures often can be often be completed with little to no out-of-pocket costs. However, before finalizing any large medical expense, it’s always best for employees to check with their plan administrators. PAULA BURKES, BUSINESS WRITER