Did you know that you might only have until December 31st to use the money you earned before it disappears? It may be time to use your funds before it's too late.
What’s the difference between an HSA and an FSA?
An FSA (Flexible Spending Account) allows employees to set aside a portion of pre-tax earnings to pay for qualified medical expenses. An HSA (health savings account) is a type of tax-advantaged account where you can put money if you have a high deductible health plan (HDHP). You can use the money in the HSA to pay for future medical expenses, or you can use it as a retirement account, depending on your goals.
The two accounts have some major similarities, but also some differences when it comes to the availability of your funds.
Will my funds expire?
It depends on which type of account that you have. While HSA funds roll over at the end of the year for as long as the account is open, FSA funds will actually expire at the end of the year. The reason for this is because… well, because the IRS says so. Whatever funds are not used go back to you employer. And while a small number of FSA accounts are beginning to allow a short grace period at the beginning of the new year, that vast majority still adhere to the “use it or lose it” rule.
How can I prevent myself from losing my funds?
The only way to keep those funds from disappearing and going to waste is to spend them before the end of the year. If you have any medical needs that you have been putting off you might want to pencil in some appointments. For the rest of us, it’s time to start buying any products or gadgets out there that are covered by your HSA or FSA account. After all, why should your employer get back money that YOU EARNED?
Might we suggest a Sleep8?
If you are looking for a great way to get a whole lot of bang for your soon to vanish buck, we suggest Sleep8. Sleep8 supports your CPAP, BIPAP, or APAP with quick and easy equipment maintenance. Using the cleaning power of ozone or “activated oxygen,” Sleep8 is able to quickly and easily support your supplies at the touch of a button without using any harsh chemicals or any of the proverbial “elbow grease.” And the best part is, Sleep8 is covered by all HSA and FSA accounts under code 9274
So what are you waiting for? Click below to buy now and put your FSA or HSA to work before it's too late.