HSAs offer more flexibility and long-term growth potential, making them a valuable tool for future financial planning. Learn about HSA options from Aetna. FSAs, while more restrictive in terms of rollover and ownership, provide instant access to funds. This makes an FSA a practical choice for many employees.
What is a disadvantage of an FSA?
While flexible spending accounts can save you money, they come with some drawbacks: Use-It-Or-Lose-It Rule: Unused FSA funds are forfeited unless your employer offers a grace period or carryover option.
How does the FSA program work?
How the plan works. You contribute up to the IRS limit each year ($3,200 in 2025) to use for qualifying health expenses. Your FSA contributions are deducted from your paycheck before taxes are withheld, which reduces your taxable income and saves you money on taxes (depending on your situation).
Do you have to pay back FSA money if you quit?
If you leave your company, try to use your FSA funds before you go because you dont have to pay the company back for the difference between what you spent and what you paid in, says Erik O. Klumpp, CFP, founder, and president of Chessie Advisors, LLC.
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