How to Spend Your FSA and HSA Accounts —and What to Do Before the End of 2022

Financial planning probably isn’t the most fun you’ll have over the holidays. But because some accounts and insurance plans expire at the end of the year, ‘tis the season to make sure you don’t leave any money on the table. Two common sources of financial confusion are Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs). These accounts can save you money on many health-related expenses incurred over the calendar year. However, to get the most out of these plans, it’s important to understand how they work—especially since many FSAs are about to expire. [time-brightcove not-tgx=”true”] Here’s what you need to know about FSAs and HSAs. What is the difference between FSAs and HSAs? FSAs and HSAs are savings accounts that let people set aside pre-tax funds for health-related expenses. To spend these accounts, you’ll typically receive a debit card to pay for expenses directly; otherwise, you must keep your receipts and submit them later for reimbursement. The IRS also requires that you keep records of what you buy, so hold onto your receipts. However, there are several important distinctions between these two accounts. For one, while an FSA is independent of your insurance plan, HSAs are only open to people with high-deductible health plans—which, in 2023, will mean a deductible of at least $1,500 for individual coverage and $3,000 for a family, says Susannah Snider, a certified financial planner an...
Source: TIME: Health - Category: Consumer Health News Authors: Tags: Uncategorized Health Care healthscienceclimate Source Type: news