That’s exactly what a well-funded HSA is designed to do! HSA vs. FSA: What’s the Difference? Like HSAs,Flexible Spending Accounts (FSAs)can also help you save up for medical expenses without paying taxes on the money you contribute to your account. But in an ironic twist, FSAs are...
What is an FSA? An FSA, also known as a flexible spending account (or arrangement), is a tax-free fund that employees can contribute to and use on qualifying costs. There is an annual IRS contribution limit on FSAs. There are a few types of FSAs, including: Health FSAs: Employees can...
Since FSAs are provided by your employer, you can’t use the funds once you leave your job. Also, if the FSA funds are used for non-medical expenses, you may be required to reimburse the account. Individuals can change their FSA contributions if they switch their plan during enrollment, i...
Nov. 12, 2024, 4:32 PM UTC(AP)Don’t Settle for a Subpar Health Savings Account A health savings account (HSA) is a tax-advantaged account designed to help you save for health care costs. Plus, when your HSA savings levels reach a certain threshold, you can invest the money, much ...
Another type of FSA is adependent-care flexible spending account, which is used to pay for child-care expenses for children age 12 and under and also can be used to pay for the care of qualifying adults, including a spouse, who can't care for themselves and meet specific Internal Revenue...
by a health savings account, check out my overview ofHSA and FSA-eligible qualified medical expensesandIRS publication 502. For example, as a result of the CARES Act during the COVID-19 pandemic, OTC medications, telehealth, and menstrual care productsare now considered qualified medical expenses...
There are two main types of flexible spending accounts: a healthcare FSA and a dependent care FSA, also known as a dependent care assistance program (DCAP). A healthcare FSA is an employer-owned savings account that an employee funds through untaxed contributions. Employees can use FSA funds ...
These accounts can help you reap big savings when it comes to your health-care expenses. If you're looking to save money on yourmedical expenses, you might consider opening aflexible spending account (FSA). With an FSA, individuals can use pre-tax money on a number of expenses that medica...
What is a Health Flexible Spending Account (FSA)? A health FSA is an employer-established benefit plan. Your employer can offer them with other benefits as part of a cafeteria plan. A health FSA allows you to be reimbursed for qualified medical expenses, including co-pays, eyeglasses, prescr...
HSA: Health Savings Account (HSA) FSA: Flexible Spending Account (FSA) HRA: Health Reimbursement Arrangement (HRA) Brokerage and trading: Mutual funds Other: Dependent Care, Commuter, Lifestyle, COBRA, Direct Billing, Premium Only Plans Investment options HealthEquity offers access to 3 options for...