Blog Information

• Posted By : Daniel Stewart
• Posted On : Sep 15, 2022
• Views : 105
• Category : General
• Description : A flexible spending account (FSA) provides a tax-free way to save money on healthcare costs. Similar to a health savings account (HSA), an FSA is usually offered as a benefit through an employer.

Overview

• A flexible spending account (FSA) provides a tax-free way to save money on healthcare costs. Similar to a health savings account (HSA), an FSA is usually offered as a benefit through an employer. The difference between an HSA and an FSA is that the funds in an FSA do not roll over at the end of the year and must be spent or lost. An HSA allows you to keep unspent funds from year to year.
  
  

  What Can an FSA Pay For?
  
  

  FSA funds can be used for many healthcare costs that traditional insurance would apply toward. Doctor visits, lab work and more can usually be paid for using an FSA. You can also use an FSA to pay for things like gym memberships, counseling, and prescriptions.
  
  

  These types of accounts are good for individuals who have high-deductible insurance plans, as an FSA can cover incidental medical expenses that insurance doesn’t cover. An FSA can also be beneficial if you haven’t met your deductible for the year yet, and you don’t anticipate doing so.
  
  

  Paying for Braces With an FSA
  
  

  Braces are a common dental expense, especially for parents. An FSA can be used to pay for medical costs for dependents, and these funds can also usually be used to cover dental care. While you can pay for dental care through most FSAs, you can also ask your employer about setting up a limited purpose FSA for dental coverage.
  
  

  A limited purpose FSA (LPFSA) is a type of FSA that only covers certain expenses instead of being available to be used for all medical expenses. In most cases, an LPFSA is used only for dental or vision coverage. If you are looking for a limited purpose FSA, you should visit this website.
  
  

  The Added Benefit of an LPFSA
  
  

  As an added benefit, you can contribute to an HSA and an LPFSA at the same time. With a traditional FSA, you are not able to have both types of accounts.
  
  

  This can limit your saving and healthcare spending ability. With an LPFSA, you can save toward dental and vision expenses while also putting aside tax-free dollars to be used for other medical expenses through your HSA.
  
  

  Read a similar blog about savings investments here at this page.