hsa and fsa??

if your employer offers and fsa and and hsa, should you sign up for both??

i'm a little confused.

i usually participate at the maximum amount for the fsa. this year, we're being offered an hsa. i'm looking into the difference pros/cons of the hsa (since i've never had it available before).

thanks in advance

hsa and fsa??

Do you have a high deductible plan? HSAs are only available with high deductible plans. They are similar to an FSA but the amount doesn’t have to be used in the year contributed - it rolls.

Re: hsa and fsa??

They are two different things. The HSA is an actually health care plan. The FSA is a plan where you put away money pre-tax to pay for medical expenses. I think if you have an HSA you can only have a modified FSA.

I was never a fan of an FSA. I know people love them but I hate the "use it or lose it" rule. Especially this year when you weren't allowed to see doctors, I wonder if people were able to extend the time frame.

As for the HSA - it is a higher deductible plan, but the premiums are typically lower than a traditional open access health care plan. If you don't have a lot of medical expenses then you can actually save money with an HSA. I was very resistant to an HSA when my company offered it because if see a lot of doctors, you can spend a lot out of pocket. But now, a few years later, I have a huge cushion of savings I can use towards future health expenses.

Re: hsa and fsa??

Above posters are correct. You have to be in a High deductible plan to do an HSA. Money can be used for your deductibles copays and other medical costs. The money is yours forever and most plans allow you to invest it once you reach certain amounts

HSA can be withdrawn tax free for medical expenses for the rest of your life. Once you reach 65, you can withdraw like a 401k paying a deferred tax. In this way, they are a great vehicle to save for future retirement costs as well as in year medical expenses.

If you also qualify for an FsA then it can only be dental and vision. I use HSA as a retirement vehicle so I set aside $200 in FSA for my glasses.

If you are not in a high deductible plan than FSA is used for copays, deductibles and stuff but it cannot be carried over year to year. You usually have until March to incur expenses or else you lose the money. You can use it for over the counter.

hsa and fsa??

I don’t have an HSA but I do like my FSA. I put in usually $750 yearly for new glasses for both me and my husband and copays.

Re: hsa and fsa??

For the past couple of years you can rollover unused funds in your FSA to the following year. For 2021 you can rollover up to $550 in unused funds.

hsa and fsa??

Also, this year pads & tampons were added as FSA eligible items. As well as some OTC medications.

Since you are withholding these contributions from your paycheck pre-tax you are reducing your tax liability so definitely something that should be considered.