One thought on “What are qualified expenses?

  1. Arti says:

    FSA contribution limits can change yearly. If you’re self-employed, you can’t open an FSA. You must choose the amount at the beginning of the year. For 2019, you can elect contributions of up to $2,700 to your FSA, which is lower than the maximum HSA contribution. To be eligible for an HSA, you must have a high deductible health plan (HDHP), which has to be your only health insurance plan (the IRS states specific exceptions for this rule, including coverage for specific diseases or illnesses, accidents, and disabilities). To open an FSA, your employer has to establish it for your workplace. For 2019, your health plan must have an out-of-pocket maximum of $6,750 (individual coverage) or $13,500 (family coverage) and a deductible of at least $1,350 (individual) or $2,700 (family). 1. Not all plans with these deductibles are HSA-qualified, though, so be sure to check with your health plan or employer. The funds in an FSA, like with an HSA, can be spent only on certain expenses. HSA contribution limits can change yearly. The funds in an HSA can be spent only on certain expenses. This chart provides a simple comparison between HSAs and FSAs, based on some of the key components of these accounts. Unlike an HSA, there are no health plan coverage requirements for an FSA, making it possible for employees to enroll in an FSA even if they don’t have health coverage through their employer. However, if you have a family status change such as marriage, divorce, or the birth of a child, you can change your election at that time. 3 You can’t be enrolled in Medicare, and you can’t be able to be claimed as a dependent on anyone’s tax return.

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