Understanding HSAs and FSAs
What is an HSA (Health Savings Account)?
- Eligibility:
- Must have a high-deductible health plan (HDHP).
- HDHPs have deductibles of at least $1,400 (individuals) or $2,800 (families).
- Cannot have other disqualifying health coverage.
- Key Features:
- Portable: You can take it with you if you change jobs.
- Rollovers: Unused funds carry over year to year.
- Earns Interest: Funds can grow through interest or investments.
- Withdrawals: You can withdraw for non-medical expenses but will pay taxes and penalties.
Continue Reading
What is an FSA (Flexible Spending Account)?
- Eligibility:
- Offered by your employer (you must qualify through your job).
- Not available for self-employed individuals.
- Key Features:
- Employer-Linked: Stays with the employer and does not transfer if you change jobs.
- “Use It or Lose It”: Money must usually be spent within the plan year. Some employers offer a grace period or let you carry over a small amount.
- No Interest: Funds do not earn interest or grow.
What Do HSAs and FSAs Cover?
- Eligible expenses include:
- Medical, dental, and vision care.
- Diagnosing, treating, or preventing diseases.
- Treatments for any body part or function.
Differences Between HSAs and FSAs
- Contribution Limits:
- The IRS sets yearly limits for how much you can contribute to each account.
- Growth:
- HSAs can grow over time (through interest or investments).
- FSAs do not grow and must be used within the plan rules.
- Withdrawals:
- HSAs allow withdrawals for non-qualifying expenses (taxes and penalties apply).
- FSAs do not allow withdrawals for non-qualifying expenses.
Whether you’re protecting your home, basement, or vacation cabin, the Govee Smart Water Leak Detector is your first line of defense against costly water damage. With real-time alerts, smart...
🌬️ Take Control of Your Air with This Powerful 5,000 Sq. Ft Dehumidifier! 🏠💧 Struggling with damp air in your basement, bathroom, or laundry room? Say goodbye to excess moisture and hello to comfort...
As the population of elderly and disabled individuals continues to grow, finding ways to manage long-term care efficiently and effectively has become a priority in healthcare systems across the United...
As the population of elderly individuals continues to grow, the issue of hospitalizations among seniors has become a significant concern. Elderly hospitalizations not only place a financial burden on...
As we grow older, ensuring our safety and well-being becomes increasingly important. Whether you live alone or have loved ones nearby, one of the most empowering actions we can take to safeguard...
As we age, the need for safety and peace of mind becomes increasingly important. Whether you live alone, have limited mobility, or simply want to ensure that help is within reach, a medical alert...
Older adults face unique challenges when it comes to safety at home due to changes in mobility, vision, and cognitive function. Below are common safety issues and practical remedies to address them:...
Understanding HSAs and FSAs What is an HSA (Health Savings Account)? Eligibility: Must have a high-deductible health plan (HDHP). HDHPs have deductibles of at least $1,400 (individuals) or $2,800...