What is a flexible spending account (FSA)?
An FSA is a fund which allows you to pay for eligible medical expenses with pre-tax money.
Doctor office co-pays, bandages, contact lenses, contact lens solution, etc. are all eligible expenses.If you don’t have an FSA and are interested in getting one, talk to your company or provider about enrollment. Don’t wait till the last minute to use your FSA funds. FSA funds typically expire at the end of each year. If you don’t use all the funds by the expiration date, the remaining money is lost. After the annual expiration FSA funds are renewed (prefunded) which means you can start using the replenished money in your FSA fund before contributing money to it. To avoid losing your funds, talk to your company or provider about when your FSA funds expire and renew.
What is a health savings account (HSA)?
An HSA is a savings account which allows you to pay for eligible medical expenses and save for future medical expenses using pre-tax money.
Doctor office co-pays, contact lenses, and eyeglasses are examples of eligible expenses. Unlike an FSA, funds roll over and accumulate year to year if not spent. If you don’t have an HSA and are interested in getting one, talk to your company or provider about enrollment.