2 Replies to “How to Save Money with a Flexible Spending Account.”

  1. Great breakdown on the FSA Kathy! I like the FSA but the HSA combined with a HDHP is even better. Of course, it’s apples and oranges because of the plan types. FSA is great as long as you can spend that money and everyone I talk to about it has some sort of method to get rid of the funds.

  2. Thanks for stopping by, Matt!
    Yes, a Health Savings Account (HSA) combined with a High Deductible Health Plan (HDHP) can be a great way to lower monthly insurance premiums, and although you usually end up paying more for out of pocket medical expenses due to the higher deductible, at least you get to do it with pre-tax income. A definite win!
    In my case, monthly health insurance premiums are covered by my employer (for myself and my family, which I know is rare). So although the Flexible Spending Account (FSA) is a use it or lose it proposition, it’s the best bet for me to increase tax-optimization and I’ll add the amount saved into my retirement fund.
    I think you’re right, that if people make the effort to sign up for an FSA, they usually make sure they use up the funds!

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