HSA/FSA accounts were created so individuals could use pre-tax money to pay for expenses used to treat, mitigate, or prevent a diagnosed medical condition. Because HSA/FSAs use pre-tax money, you’re getting more purchasing power for your dollar. Rather than pay taxes on income and then sp...
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...
Medicines or drugs qualify as medical expenses if they require a prescription, are over-the-counter medicines that are prescribed, or are insulin. FSA-eligible items also include things like bandages, crutches, or artificial teeth. The employee, their spouse, dependents, or child under the age o...
Common purchases include everyday health care products like bandages, thermometers and glasses. 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 th...
A general health FSA helps cover eligible medical expenses, like deductibles and copayments or prescription medications. Rollover and grace periods: DC-FSA funds don’t typically roll over, but depending on your plan, you may have up to a 2.5-month grace period before the money is forfeited....
Unlock more eligible reimbursements with our licensed Letter of Medical Necessity service. Start Saving Today How float works Get reimbursed automatically for your healthcare expenses in four simple steps Connect Your Email Securely connect your email to start discovering eligible expenses Automatic Receipt...
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...
Eligible expenses:Both accounts cover a wide range of medical expenses, from prescription medications to doctor visit co-pays and medical equipment. Now, a look at the differences you’ll find between HSAs and FSAs: Rollover:One of the most significant differences is the rollover feature. HSAs...
You might already be saving on eligible expenses like prescriptions, eyewear and other over-the-counter products. How does an FSA save me money? The money you contribute to your Flexible Spending Account is taken out of your paycheck before taxes are taken out. In effect, you lower your ...
A healthcare FSA is a traditional FSA in which you can use pre-tax dollars to pay for eligible medical expenses, including some dental and vision expenses. For health FSAs, employers typically have two options to utilize your unused funds. The first is to offer employees a grace period of ...