Is Sunscreen FSA Eligible?
Key takeaways:
Yes, sunscreen may be FSA eligible if it meets certain IRS and FDA criteria.
Many products on the market, ranging from lip balms to facial moisturizers, offer sun protection and can be essential for safeguarding your skin against harmful ultraviolet (UV) rays. If these products meet government guidelines for sun protection, they may qualify as FSA eligible, allowing you to use pretax dollars for your purchase.
Sunscreen must be broad-spectrum (protective against both UVA and UVB rays) and have a minimum SPF of 15 to qualify as an FSA-eligible expense.
Table of contents
While sunlight offers many health benefits, such as boosting vitamin D levels and improving sleep quality, too much exposure to ultraviolet (UV) rays can increase the risk of conditions like sunburn, sun poisoning, and skin cancer. Sunscreen products, which vary in price and form — from lotions to sprays — can help protect your skin.
If you have a healthcare flexible spending account (FSA), you can use the pretax dollars in your account to pay for sunscreen that meets certain requirements. Typically, FDA-approved sunscreens with an SPF of 15 or higher meet these requirements.
What types of sunscreen are FSA eligible?
As mentioned, sunscreen products must meet specific criteria set by the FDA and IRS to qualify as FSA eligible. That means meeting the following requirements:
Broad-spectrum: They should offer protection against both UVA and UVB rays.
Minimum SPF of 15: Only sunscreens with an SPF of at least 15 or higher qualify.
FDA approved: They must be approved by the FDA for over-the-counter purchase.
Prescription Savings Are Just the Beginning
See what other benefits you qualify for—from cashback cards to cheaper insurance.
Some products that offer sun protection, like certain moisturizers and lip balms, might not be categorized as sunscreen. But since they still offer SPF protection, you may be able to use FSA dollars to purchase them, provided they adhere to the above guidelines. Here are various forms of sunscreen you might encounter:
Butters
Creams
Gels
Lotions
Oils
Pastes
Sprays
Sticks
However, sunscreens are not reimbursable expenses for dependent care flexible spending accounts (DSFSAs) or limited-purpose flexible spending accounts (LPFSAs).
This search tool can help you determine if a product qualifies as an FSA-eligible expense.
How do you use your FSA for sunscreen?
An FSA is an employer-sponsored benefit. So you need to have a job that offers FSA benefits in order to qualify. Then, you’ll have to contribute money to the account so that you can pay for FSA-eligible items, like sunscreen, tax-free.
To buy sunscreen with your FSA funds, you have a couple of options:
Use your FSA debit card. Your FSA account custodian will likely provide you with a debit card after you enroll to make shopping easier. You can use your FSA debit card to shop in store or online. The amount you spend on sunscreen and other expenses will be deducted from your account automatically.
File an FSA claim. If you don’t have an FSA debit card, you can purchase sunscreen out of pocket and get reimbursed. You’ll need to save your receipt and submit a claim to your FSA administrator for reimbursement. Keep in mind that you’ll only receive reimbursement for sunscreen and other products that have not already been covered by your health plan.
Read more like this
Explore these related articles, suggested for readers like you.
Some stores will divide items into FSA and non-FSA categories so that you can purchase non-eligible items in a separate transaction. Only qualified medical expenses will receive the tax-free benefits of an FSA.
You should also be aware that you may lose any unused FSA funds at the end of the plan year. But this all depends on your employer. Check with your account custodian to see if you’ll have additional time to use the money in your FSA via a:
Grace period: Your employer may give you up to 2.5 extra months to spend your FSA funds as a grace period. This gives you extra time to use any leftover funds before they expire.
Carryover option: Instead of a grace period, your employer may give you the option to carry over a certain amount of unused FSA funds from one plan year to the next.
If you have extra FSA dollars at the end of the year, you can use those funds to purchase qualified medical expenses for your spouse and eligible dependents, too. Many brands have even created sunscreens that are baby-friendly.
Can you use an HSA or HRA for sunscreen?
Yes, typically items that are FSA eligible are also eligible under a health savings account (HSA) and health reimbursement account (HRA).
Like with an HSA, your benefits administrator or the IRS may request itemized receipts to verify your expenses. It’s a good idea to reach out to your HSA or HRA administrator or tax advisor to confirm that individual sunscreen products are eligible for reimbursement if you’re unsure.
Who can you contact for help with your FSA or HSA?
If you have any questions or concerns about your tax-advantaged account, you can contact your:
Employer’s human resource department
FSA or HSA administrator
Certified public accountant (CPA) or other tax advisor
How do you pick the right type of sunscreen?
Choosing the right sunscreen can seem overwhelming when you have a sea of options. So the American Academy of Dermatology Association (AAD) has broken the selection process into two steps.
The first step is to choose a sunscreen that has these three essential characteristics:
Broad-spectrum: It should protect against two types of harmful rays: UVA and UVB. Overexposure to either one can damage the skin and lead to skin cancer. UVA (aka aging rays) cause signs of premature skin aging, such as wrinkles and age spots, and they are not blocked by glass. UVB (aka burning rays) are the leading cause of sunburn. However, they are blocked by window glass.
SPF 30 or higher: A sunscreen’s SPF tells you its level of sun protection. The AAD reports that sunscreen with an SPF of 30 or higher blocks 97% of UVB rays. Sunscreens with higher SPFs can provide slightly more protection. But no sunscreen can block out 100% of the sun’s UVB rays.
Water-resistant: No sunscreen is fully waterproof or sweatproof, but it can be water-resistant. Being water-resistant means a sunscreen should remain effective for at least 40-80 minutes when wet.
The second step in choosing sunscreen involves your skin type. This can be especially important for people with skin concerns. The following chart outlines some AAD recommendations for choosing sunscreen based on skin type.
Skin type | Qualities to look for and things to avoid |
Acne-prone or oily | Look for words and phrases like “noncomedogenic” or “won’t clog pores" on the label. |
Allergy-prone | Avoid sunscreens containing fragrance, parabens, or oxybenzone. |
Children’s skin (6 months or older) | Use products specifically made for children. |
Darker skin tones | Use a tinted sunscreen to prevent white residue and to prevent hyperpigmentation. |
Dry | Look for words and phrases like “moisturizing” or “for dry skin.” |
Fair | Use sunscreens with an SPF of 30 or higher. |
Skin with rosacea | Stick to sunscreens that contain zinc oxide and titanium dioxide, rather than other sun-blocking agents. This also applies to people whose skin stings or burns when applying sunscreen. |
Sensitive | Look for products that are labeled “sensitive skin.” Avoid sunscreens that contain fragrance, parabens, or oxybenzone. |
The ADA also provides recommendations, which are listed in the chart below, based on where sunscreen is being used.
Area of the body | Things to look for |
Areas with hair | Look for gel-based sunscreens for hairy areas |
Around the eyes | Use water-resistant stick sunscreen around your eyes to prevent dripping. To prevent premature aging, use a broad-spectrum sunscreen with an SPF of 30 or higher. |
Lips | Use broad-spectrum lip balms with an SPF of 30 or higher. |
When and why should you use sunscreen?
As a general rule, you should use sunscreen every day. Most UVA rays can penetrate glass and expose unprotected skin to sun damage. Even when it's cloudy outside, up to 80% of harmful UV rays can reach your skin.
Dermatologists found that 1 in 5 Americans will get skin cancer at some point in their lifetime. Skin cancer can affect people of all skin tones. But broad-spectrum sunscreens help protect against cancer-causing UVB and UVA rays.
As mentioned, the FDA recommends using sunscreen with an SPF of 15 or higher, while the ADA recommends using at least SPF 30. But generally, the amount of sun protection you need depends on your specific skin type.
Using sunscreen regularly can help decrease your risk of many skin issues, such as:
Dark spots that appear after skin conditions like acne or psoriasis clear up
Melanoma, the most deadly type of skin cancer.
Melasma, or skin discoloration related to increased melanin
Precancerous skin growths
You should reapply sunscreen at least every 2 hours when outdoors, even if it’s cloudy. You may need to apply it more frequently when you’re swimming or sweating.
It’s important to note that a higher SPF does not mean you can spend more time outdoors without reapplying. Always follow the directions listed on the sunscreen bottle. Also, be aware that outside surfaces — like snow, sand, and water — reflect the sun’s rays. This can increase your exposure to UV rays and, thus, increase your risk of sunburn.
What other skin care products are FSA eligible?
Sunscreen is just one of many categories of skin care products that can be FSA eligible. To make shopping easier, some retail stores label the various shelf items that are FSA eligible.
It’s a good idea to talk to your benefits administrator before purchasing new items, since you may need a letter of medical necessity to receive reimbursement in some cases. But here’s a list of items that are typically FSA eligible when they’re used for medical purpose, such as managing certain skin conditions like psoriasis and acne:
Facial wipes and mineral powders
Lip balms (SPF 30+)
Pain-relief masks
Rosacea treatment gels
Skin cleansers, pads, and washes
Toners
The bottom line
You can use your flexible spending account (FSA) to buy broad-spectrum sunscreens with a minimum SPF of 15 using pretax dollars. A variety of items that offer sun protection, including lip balms, lotions, and moisturizers, might also qualify for these funds.
Many FSA plans offer debit cards to make using funds easier. However, you can also pay out of pocket and submit receipts for reimbursement if necessary. Before making a purchase, confirm with your FSA plan administrator to ensure individual sunscreens and other products qualify as eligible expenses.
Why trust our experts?
References
American Academy of Dermatology Association. (2024). How do I know if I’m using the right sunscreen?
American Academy of Dermatology Association. (2024). Sunscreen FAQs.
Eunice Kennedy Shriver National Institute of Child Health and Human Development. (2021). How are drugs approved for use in the United States?
HealthCare.gov. (n.d.). Health reimbursement arrangements (HRAs): 3 things to know.
HealthCare.gov. (n.d.) Using a flexible spending account (FSA).
Pie, B. E. (2003). Amounts received under accident and health plans. Internal Revenue Service.
Internal Revenue Service. (2022). Publication 969: Health savings accounts and other tax-favored health plans.
Internal Revenue Service. (2023). Publication 502: Medical and dental expenses.
U.S. Food and Drug Administration. (2023). Sunscreen: How to help protect your skin from the sun.
World Health Organization. (2016). Radiation: Ultraviolet (UV) radiation.
This article is solely for informational purposes. This article is not professional advice concerning insurance, financial, accounting, tax, or legal matters. All content herein is provided “as is” without any representations or warranties, express or implied. Always consult an appropriate professional when you have specific questions about any insurance, financial, or legal matter.
