FSA for LASIK: The "Split-Year" Strategy

LASIK eye surgery is one of the best investments you can make for your health, but it comes with a hefty price tag—usually around $5,000.

The problem? The IRS limits your FSA contribution to $3,400 per year (for 2026). This creates a "Funding Gap" that forces most people to pay the difference with post-tax dollars.

However, with careful planning, you can use a strategy called "Split-Year Financing" to pay for nearly 100% of the surgery tax-free.

1. Is LASIK Eligible?

Yes. Laser eye surgery (LASIK, PRK, SMILE) is fully eligible for FSA, HSA, and HRA reimbursement because it corrects a bodily function (vision). You do not need a Letter of Medical Necessity.

2. The Funding Gap

Here is the math problem most employees face:

3. The Solution: The Split-Year Hack

To cover the full $5,000, you need access to two years of FSA funds at once. You can achieve this by scheduling your surgery around the plan year deadline (usually Dec 31st / Jan 1st).

How to execute it:

1. Consultation: Visit your eye surgeon in November/December. Confirm the total cost.
2. Financing: Ask the clinic if you can finance the procedure (often 0% interest for 6-12 months) or split the payment.
3. Payment 1 (December): Use your remaining Year 1 FSA balance (e.g., $1,000) as a down payment.
4. Payment 2 (January): On January 1st, your Year 2 FSA fully reloads (thanks to the "Uniform Coverage Rule"). You now have access to the full $3,400 immediately. Use this to pay off the balance.

4. The HSA + Limited Purpose FSA Combo

If you have an HSA, you generally cannot have a standard FSA. However, you can open a Limited Purpose FSA (LPFSA), which is restricted to Dental and Vision expenses only.

The Strategy:

• Contribute the max ($3,400) to your LPFSA specifically for LASIK.
• Use your HSA funds to pay the remaining balance.
• Benefit: You save your HSA dollars (which grow tax-free for retirement) and "burn" the use-it-or-lose-it LPFSA funds first.

5. The HSA Advantage

If you have an HSA instead of an FSA, this is much easier. HSAs roll over forever, so you can simply save up for 2 years until you have the full $5,000 in your account, then pay it all at once.

Check your growth potential with our HSA Wealth Simulator.