One thought on “What is a Flexible spending account (FSA)?”
Arti says:
Your employer decides if you can keep a few or all of your unused FSA funds at the end of the year. Your employer decides if you can keep a few or all of your unused FSA funds at the end of the year. An HSA is a financial account that you can fund with pretax contributions from your paycheck or after-tax contributions that are tax-deductible. An HSA is a financial account that you can fund with pretax contributions from your paycheck or after-tax contributions that are tax-deductible. In other words, you own your HSA. In other words, you own your HSA. An FSA is owned by your employer, and if you don’t spend the money by the end of the plan year, it remains with your employer, with certain limited exceptions. An FSA is owned by your employer, and if you don’t spend the money by the end of the plan year, it remains with your employer, with certain limited exceptions. There are 3 options for the employer to choose from, and the employer makes their selection before the beginning of the plan year. There are 3 options for the employer to choose from, and the employer makes their selection before the beginning of the plan year. 8 You can use the funds in your FSA to pay for qualified medical or dependent-care expenses. 8 You can use the funds in your FSA to pay for qualified medical or dependent-care expenses. 2 You can use funds in your HSA to pay for qualified medical expenses now or in the future, even if you change jobs or retire. 2 You can use funds in your HSA to pay for qualified medical expenses now or in the future, even if you change jobs or retire. An FSA is a financial account that employees can fund with pretax contributions. An FSA is a financial account that employees can fund with pretax contributions. FSA contribution limits can change yearly. FSA contribution limits can change yearly. If you’re self-employed, you can’t open an FSA. If you’re self-employed, you can’t open an FSA. You must choose the amount at the beginning of the year. 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. 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 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. 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). 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. 1. Not all plans with these deductibles are HSA-qualified, though, so be sure to check with your health plan or employer. 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. The funds in an FSA, like with an HSA, can be spent only on certain expenses. HSA contribution limits can change yearly. HSA contribution limits can change yearly. The funds in an HSA can be spent only on certain expenses. The funds in an HSA can be spent only on certain expenses. This chart provides a simple comparison between HSAs and FSAs, based on a few of the key components of these accounts. This chart provides a simple comparison between HSAs and FSAs, based on a few 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. 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 which include marriage, divorce, or the birth of a child, you can change your election at that time. However, if you have a family status change which include 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. 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.
Your employer decides if you can keep a few or all of your unused FSA funds at the end of the year. Your employer decides if you can keep a few or all of your unused FSA funds at the end of the year. An HSA is a financial account that you can fund with pretax contributions from your paycheck or after-tax contributions that are tax-deductible. An HSA is a financial account that you can fund with pretax contributions from your paycheck or after-tax contributions that are tax-deductible. In other words, you own your HSA. In other words, you own your HSA. An FSA is owned by your employer, and if you don’t spend the money by the end of the plan year, it remains with your employer, with certain limited exceptions. An FSA is owned by your employer, and if you don’t spend the money by the end of the plan year, it remains with your employer, with certain limited exceptions. There are 3 options for the employer to choose from, and the employer makes their selection before the beginning of the plan year. There are 3 options for the employer to choose from, and the employer makes their selection before the beginning of the plan year. 8 You can use the funds in your FSA to pay for qualified medical or dependent-care expenses. 8 You can use the funds in your FSA to pay for qualified medical or dependent-care expenses. 2 You can use funds in your HSA to pay for qualified medical expenses now or in the future, even if you change jobs or retire. 2 You can use funds in your HSA to pay for qualified medical expenses now or in the future, even if you change jobs or retire. An FSA is a financial account that employees can fund with pretax contributions. An FSA is a financial account that employees can fund with pretax contributions. FSA contribution limits can change yearly. FSA contribution limits can change yearly. If you’re self-employed, you can’t open an FSA. If you’re self-employed, you can’t open an FSA. You must choose the amount at the beginning of the year. 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. 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 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. 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). 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. 1. Not all plans with these deductibles are HSA-qualified, though, so be sure to check with your health plan or employer. 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. The funds in an FSA, like with an HSA, can be spent only on certain expenses. HSA contribution limits can change yearly. HSA contribution limits can change yearly. The funds in an HSA can be spent only on certain expenses. The funds in an HSA can be spent only on certain expenses. This chart provides a simple comparison between HSAs and FSAs, based on a few of the key components of these accounts. This chart provides a simple comparison between HSAs and FSAs, based on a few 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. 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 which include marriage, divorce, or the birth of a child, you can change your election at that time. However, if you have a family status change which include 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. 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.