Title : What kind of account best fits you?
What type of an account do you have? FSA or HSA?
A Flexible Spending Account (FSA), in addition to its related Health Savings Account (HSA), are employer-sponsored benefits which enable you to pay for eligible medical/dental expenses on a pre-tax basis. An FSA or HSA saves you money by reducing your income taxes. in addition to contributions you make to your flex spending account (or health savings account) are deducted by your check before any of your taxes are calculated in addition to are never reported to the IRS. The overall result? You decrease your taxable income in addition to improve your disposable income which can save you hundreds or even thousands of dollars a year. If you expect to incur medical/dental expenses not reimbursed by your current health insurance, you should definitely think about participating in an FSA or HSA if one is actually offered.
Caution: Potential Downsides to a Flexible Spending Account “FSA”
nevertheless before you jump at enrolling in one of these cafeteria plan type programs, there is actually a potential downside to a Flex Spending Accounts in addition to which has to do with not using all of the money you set aside.
which's right – every month you set aside funds to cover your medical/dental costs with an FSA. nevertheless what happens if you're getting to the end of the year in addition to a chunk of change is actually still sitting in your FSA? Here comes the bad news … studies have shown which employees on average lose approximately $100 annually in forfeited balances within their employee health care flex spending accounts because any money remaining in your flexible spending account on Dec 31 disappears – right into the pockets of your employer.
The not bad News with Health Savings Accounts “HSA”
However, which "use which or lose which" issue with FSA's is actually not an issue with HSA's. Unlike a flex savings account, you don't lose your money at the end of the year with health savings accounts. which simply rolls over in addition to continues to grow...year after year, to be used for eligible medical expenses, especially those times when you have higher than expected health care costs. Also, an HSA is actually portable. If you leave your employer, no problem. The HSA is actually yours; you take which with you.
We know these health care savings in addition to spending plans can get confusing. We wish which helps you sort through the choices in addition to make a decision which is actually best for your family. If you need to review your treatment needs for your flex account planning, please call our office in addition to talk to Kelly (651) 482-1122.
That is all articles What kind of account best fits you? This time, hopefully can provide benefits to all of you. Okay, see you in another article post.
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