In addition to co-payments for doctor's visits and prescription drugs, you can use your spending account for many expenses not covered by your health plan. Most of the money I run through my plan ends up paying for dental care. You also can use the account to pay for glasses, contacts and even Lasik surgery to correct vision. Cosmetic surgery doesn't qualify. One advantage you may not have considered is that the accounts allow you to spend the money before it's been deducted from your paycheck, the equivalent of an interest-free loan.
Many employers also offer a flexible spending account for child care expenses.
Q. I own shares of mutual funds, three of which will make capital gains distributions in mid-December. I plan to redeem my shares. At this point the capital gains or losses are not significant. If you plan to redeem your shares, you might as well do it before the distributions. The distributions will be taxable income.