FSA and HSA

In this open enrollment season, make sure you maximize your HSA or FSA contributions to get tax benefits. If you’re eligible for both, HSA is a better choice. Some details:

🎯 HSA 🎯

1️⃣ $3,850/person or $7,750/family tax-exempt max contribution in 2023 that can be used for medical, dental, and vision.

2️⃣ Always put the maximum amount in HSA because it can be used in the future.

3️⃣ Unused money can accumulate & grow tax-free over time.

4️⃣ Money can be invested in the market for long-term growth.

☔ FSA ☔

1️⃣ Tax-exempt $3,050 max contribution in 2023 that can be used for medical, dental, and vision.

2️⃣ Rule of thumb is to put enough money to cover 50% of the total healthcare deductible for the family PLUS all out-of-pocket dental and vision expenses.

3️⃣ Spend all the money in 2023 or lose it. Also, spend all the money if you leave your job.

4️⃣ Visit fsastore[.]com at year-end to use unused funds for a variety of commonly used items.