FSA/HSA – Frequently Asked Questions

What are Healthcare Flexible Spending Accounts (FSAs)?
Healthcare FSAs are employer-sponsored benefit plans that allow participating employees to contribute pre-tax dollars (from their employment compensation) into their healthcare FSA. Funds contributed to healthcare FSAs can be used for certain "qualified" medical expenses, including doctor visits, prescriptions and certain other products approved by the Internal Revenue Service (IRS)* or determined to be "medically necessary" by a licensed physician. Healthcare FSA funds must be used by the end of the year or benefits period (as specified under the employer-sponsored plan) and by law must be forfeited if not used. Some (but not all) healthcare FSA plans offer a grace period to claim FSA benefits while others allow a portion of the funds to roll over for use in the next plan year. These grace and rollover periods typically do not last for the entirety of the following plan year.

What are Health Savings Accounts (HSAs)?
HSAs may be offered by an employer but also may be established by an individual not enrolled in employer-sponsored healthcare coverage. Only individuals who are enrolled in a High Deductible Health Plan can establish an HSA. Like an FSA, HSA account holders can (generally) contribute amounts into their HSA on a pre-tax basis. HSA funds are invested and belong to the account holder until fully used (meaning funds held in an HSA are not forfeited at year end). HSA funds can similarly be used for healthcare-related expenses, including for items on the IRS' pre-approved qualified medical expense list or pursuant to a licensed physician's letter of medical necessity.

What can I purchase from Nordstrom Rack using healthcare FSA or HSA funds?
Nordstrom Rack offers a wide variety of over-the-counter healthcare products and treatments that may be eligible for purchase using FSA and HSA funds. Qualifying purchases can be made in store at Nordstrom Rack locations and online at NordstromRack.com. Examples of products you can purchase using FSA or HSA funds include certain sunscreens, acne preventions and treatments, and face, neck and hand therapy devices. Browse products you can purchase using FSA or HSA funds. "HSA/FSA eligible" is noted within details of the corresponding eligible item's product page. Other Nordstrom Rack products may be eligible for reimbursement using FSA or HSA funds, and you should consult with your benefits administrator to confirm. If the product is not on the IRS' pre-approved list of "qualified" medical expenses, you may need a letter of medical necessity from your physician to use FSA or HSA funds to purchase the product.

Do you need a prescription to purchase products with your FSA/HSA dollars?
Many over-the-counter healthcare products can be purchased using FSA or HSA dollars without a prescription. Some products that are not pre-approved by the IRS as "qualified" medical expenses can still be purchased using FSA or HSA dollars with a letter of medical necessity from a licensed physician. Nordstrom Rack does not engage with physicians for the purpose of issuing letters of medical necessity to customers. Check with your FSA or HSA administrator for specific guidelines on purchasing over-the-counter products or on obtaining and submitting a letter of medical necessity.

Are products purchased with in-store pickup or same-day delivery eligible for FSA or HSA reimbursement?
Yes, ability to use FSA or HSA funds for a purchase is based on the products purchased, not how they are picked up or delivered. As long as the product you are buying is approved for purchase using FSA or HSA funds, you can select in-store pickup or same-day delivery.

How do I pay for Nordstrom Rack products using FSA or HSA funds?
Nordstrom Rack does not currently accept FSA or HSA debit cards as a payment method. You can still purchase certain approved products from Nordstrom Rack using FSA or HSA funds by following the steps below:

• Make Your Purchase. Purchase an FSA or HSA eligible product online at NordstromRack.com or in store. Make sure you request a receipt for your purchases made in store. You'll need it to be reimbursed using FSA or HSA funds.
• Request Reimbursement. Follow the process set up by your FSA or HSA administrator for submitting reimbursement requests, including submitting a copy of your receipt. You will need certain information on your purchase to request reimbursement. This information will be found on your receipt or, if you placed an online order, in your order confirmation (you will receive this via email once you have completed your purchase).
• Claim Processing and Reimbursement. Your request for reimbursement will be reviewed by the administrator for your FSA or HSA. Your reimbursement will be processed by the administrator. If your administrator needs additional information, they can let you know what else you need to provide to receive your reimbursement.

What happens if I need to return a product I bought with FSA or HSA funds?
Since you purchased the product from Nordstrom Rack before submitting for FSA or HSA reimbursement, we will simply follow our standard return policy and issue a refund to your original payment method. You will need to ask your FSA or HSA administrator on any other steps necessary to process the return for purposes of your FSA or HSA funds.

Are any products not eligible for reimbursement using FSA or HSA funds?
Yes, non-medical products that are considered cosmetic in nature might not be eligible for purchase using FSA or HSA funds. Some products might serve both cosmetic and healthcare purposes and might be eligible for purchase using FSA or HSA funds as a result. We recommend you confirm (including with your FSA or HSA administrator if needed) whether a particular product is eligible for FSA or HSA reimbursement before making your purchase.

*The IRS regularly updates its list of products that are considered "qualified" medical expenses for purposes of payment using FSA or HSA funds. Nordstrom Rack bases these FAQs on publications issued periodically by the IRS but does not make any representation that these FAQs convey the most recent guidance issued by the IRS. Nordstrom Rack does not make any guarantees regarding the eligibility of any particular product for purchase using FSA or HSA funds (including with respect to those designated using "FSA/HSA Approved" icon). You are solely responsible for determining whether a product purchase is considered a "qualified" medical expense and can be purchased using your FSA or HSA funds. The information provided on NordstromRack.com is provided for educational purposes only. Nordstrom Rack in no way makes any representation or guarantee as to a particular tax result in providing these FAQs, which are provided solely for your convenience. This information is not, and should not be considered, professional advice concerning financial, tax or legal matters and is provided "as is" without any representations or warranties, express or implied. You should always consult an appropriate professional, including the administrator for your FSA or HSA plan, when you have specific questions about your FSA and HSA account and the use of funds contained therein.