Your employer may give you the choice to enroll in an FSA/HSA.
Here’s how to spend the money wisely, according to a financial expert.
For example, you may have insurance that pays for an eye exam but not foreyeglassesor contact lenses.
To learn the FSA and HSA meaning and learn which is best for you, keep scrolling.
FSA and HSA, explainedincluding how and where to spend the money
1.
What is an FSA?
chief people officer at Credit Karma
FSAs are only available through an employer, and employers are not required to offer them.
What is an HSA?
HSAs are a tax-free way to save for and pay for healthcare, says McCreary.
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What are the benefits and of having an FSA and-or HSA?
But, keep in mind that at the end of each year, any unused FSA contributions are lost.
Bonus: The money in your HSA remains yours even if you switch jobs or stop working.
Where can you spend it?
Both accounts allow you to pay for medical expenses.
chief people officer at Credit Karma
Multiple retailers have FSA and HSA shops.
How do you spend it?
This varies depending on your employer.
Which one is best for you?
While HSAs, if you qualify, are great for the long-term.
Whether one or both works for you depends on your circumstances.
Take a look at your budget and at any expected healthcare costs in the coming year, says McCreary.
As with anything, read the fine print to understand what works for your healthcare needs.
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