How Can an FSA Help You Pay for Medical Expenses?
If you’re facing high medical expenses, you may be looking for ways to reduce your out-of-pocket costs. One option to consider is a Flexible Spending Account (FSA).
What is an FSA?
An FSA is a tax-advantaged savings account that allows you to set aside money from your paycheck to pay for eligible medical expenses. The money you contribute to an FSA is deducted from your paycheck before taxes, which can save you money on your income taxes.
What Expenses Can I Use an FSA For?
FSAs can be used to pay for a wide range of medical expenses, including:
Prescriptions
Specialist copays
Dental and vision care
Mental health services
Over-the-counter medications
First aid supplies
Transportation to medical appointments
Can I Use an FSA if I’m Not on My Spouse’s Insurance?
Yes, you can use an FSA even if you’re not on your spouse’s insurance. However, the funds in your FSA can only be used to pay for your own eligible medical expenses, not your spouse’s.
How Much Can I Contribute to an FSA?
The maximum amount you can contribute to an FSA for 2023 is $3,050. However, your employer may set a lower contribution limit.
Should I Open an FSA?
If you have high medical expenses, opening an FSA may be a good way to save money on your taxes and reduce your out-of-pocket costs. However, it’s important to note that FSAs are “use it or lose it” accounts. Any money that you don’t use by the end of the year will be forfeited.
To learn more about FSAs and other options for paying for medical expenses, contact a licensed agent or visit HealthCare.gov.
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