In the case of an HSA, the entire account balance carries over to the next year – and it collects interest – allowing you to save now for unexpected medical expenses later in life. In the case of an FSA, most of the unused funds expire at year-end, with only a small portion carryi...
Help Save Money for Medical Expenses With an FSA Sign up with MetLife Learn how here 1 "IRS: Healthcare FSA reminder: Employees can contribute up to $3,300 in 2025; must elect every year,” IRS 2“Revenue Procedure 23-24,” IRS, 2023 3“Using a Flexible Spending Account (FSA),”...
A flexible spending account lets you use pretax money to pay for health or dependent care expenses.
HSA stands for health savings account. Think of it as a type of savings account for medical expenses. You can only set up an HSA if you also have an insurance plan with a high deductible. A deductible is the amount you have to pay for medical bills before your insurance plan kicks in...
If an HSA isn’t available to you, an FSA can be a good alternative, since it still uses pre-tax money to pay for medical expenses. However, it’s important to remember that unused funds may disappear at the end of the year, as they typically don't roll over.1 Can you have both...
FSA — also called a flex plan, reimbursement account, Flex 125, Tax Saving Plan, Medical Spending Account, a Section 125, or a Cafeteria Plan — is an employer-sponsored benefit that allows you to pay for eligible medical expenses on a pre-tax basis. If you expect to incur medical expen...
Since FSAs are a pre-tax benefit they help employees save up to 40% on health and dependent care expenses. FSAs allow employees to set aside pre-tax dollars to pay for eligible medical expenses such as prescription drugs, co-pays, deductibles, procedures, and other out-of-pocket medical ...
First of all, the flexible spending account, also known as a flexible spending arrangement, is a benefit that is employer-sponsored and allows you to put aside a predetermined amount of your income for medical expenses that are not covered by your health insurance policy. These funds would be...
Keep in mind that DC-FSA expenses must be work-related to be eligible for reimbursement. This will generally mean that both of the following need to be true:1 Expenses allow you or your spouse to work or look for work. Expenses are used to help care for a qualifying person. What is ...
Everything from medical expenses that aren’t covered by a health plan (like deductibles and co-pays to dependent day care) to over-the-counter medication can also be eligible. The downside is that the what you can spend your FSA funds on depends on the plan your employer has in pl...