Health Flex Spending Account (FSA) If you are not HSA eligible the FSA is a pre-tax benefit account that’s used to pay for eligible medical, dental, and vision care expenses – those not covered by your health care plan or elsewhere. It’s a smart, simple way to save money while keeping you and your family healthy and protected. Plus, if you enroll/re-enroll in FSA during Open Enrollment, you can carry over up to $640.00 remaining in your account from one plan year to the next, so there’s no “use or lose” risk.
Limited Flex Spending Account (LFSA) If you’re enrolled in an HSA-qualified high-deductible health plan and have a Health Savings Account (HSA), you can increase your savings with a LFSA. This pre-tax benefit account helps you save on eligible out-of-pocket dental and vision care expenses while taking advantage of the long-term savings power of an HSA. Plus, if you enroll/re-enroll in LFSA during Open Enrollment, you can carry over up to $640.00 remaining in your account from one plan year to the next, so there’s no “use or lose” risk.
How You Save With a Health Care FSA, you use pre-tax dollars to pay for qualified out-of-pocket expenses. The money you contribute is not subject to payroll taxes, so you end up paying less in taxes and taking home more of your paycheck.
And since you can carry over up to $640.00 remaining in your account from one plan year to the next, there’s no reason not to take advantage of the tax savings this year – and every year.