Daily Juice 046 – FSA & HSA

Daily Juice 046 – FSA & HSA

Today I want to talk about Flexible Savings Accounts and Health Savings Accounts.

Both of these types of accounts offer you the option to defer pre-tax dollars to be used for medical expenses and FSA account has an option for Dependent care expenses (such as child care).

The difference between FSA & HSA is this:

  1. Funds in HSA account are allowed to be kept in account if not all used in the current year. This account becomes an investment account for the future. There are various investment options available, from a savings account to index funds.
  2. HSA account requires to have a High Deductible plan to be associated with it.
  3. FSA account for Medical care requires you to use most of the contributed dollars, except for $500, which can be carried over to the next year.
  4. FSA account for Dependent care allows $5000 per year contribution in 2016 and has to be used in the year contributed.

If you haven’t taken advantage of these accounts before, think about what medical expenses you might have coming up next year. Why not pay for them with pre-tax dollars?

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Anna Sergunina
Anna Sergunina

I'm Anna Sergunina, CFP®, President & CEO at MainStreet Financial Planning, Inc. My passion lies in serving others through financial planning, helping clients achieve their dreams like buying a home, saving for education, or retiring early. With over two decades in the industry and a CFP designation since 2009, I'm dedicated to excellence and continuous growth. Beyond work, I cherish moments with my son Liam, prioritize self-care, and engage in content creation for my Money Boss Parent Podcast and Money Library blog.

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