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Am I Eligible for a Flexible Spending Account?

Lively · July 26, 2018 · 3 min read

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In today’s world, there are many healthcare savings options. Healthcare can be an expensive necessity, so having a way to save is helpful, but, with all the choices, you may be wondering which type of account is best for you.

Flexible Spending Accounts (FSAs) are an excellent way to use pretax dollars to pay for healthcare costs you would pay for anyway. As with any type of account, there are specific qualifications you have to meet to utilize one. Read on to see if you qualify for an FSA.

What is a Flexible Spending Account?

A Flexible Spending Account (FSA) is a tax-exempt account, offered by employers that can be used for qualified health expenses. The money is deducted from your paycheck before taxes are taken out, saving you money while saving for healthcare expenses.

You can use the money in your FSA to pay for eligible medical, dental and vision care expenses that aren’t covered by your healthcare plan. It’s a smart, easy way to save money and keep your family healthy. A win-win.

Thousands of medical expenses, from products to procedures are covered, so if you’re eligible, take a close look to see if one makes sense for you.

Using your FSA account for healthcare related costs will help you save money. Here are some items you can use your FSA funds for.

Dental Care:

  • Preventative care

  • Sealants

  • Fillings

Vision Care:

  • Routine eye exams

  • Prescription eyeglasses or sunglasses

Everyday Healthcare Items:

  • Children's sun protection

  • First aid and Band-Aids

If you re-enroll, some FSAs offer up to a $500 carryover option or a grace period to use the money to mid-March of the following year. Employers can offer one of these options, but not both, and it is not required.

Does your employer offer a Flexible Spending Account?

You are eligible to enroll in an FSA only if your employer offers one. Your FSA does not need to be tied to a specific type of health plan.

For those who are self-employed, FSAs are generally not an option. Though exceptions exist, self-employed employees and shareholders who own 2% or more in an S-Corp, LLC, LLP, PC, sole proprietorship, or partnerships are usually not eligible for FSAs. If you are self-employed, your can look into a Health Savings Account.

HSA vs. FSA

If you already have a Health Savings Account (HSA) or are plan to get one, you will not be eligible for a Healthcare Flexible Spending Account (HCFSA). You cannot be enrolled in an HSA and an HCFSA at the same time.

However, you can have an HSA and enroll in a limited purpose FSA, covers only dental and vision, not medical. You can also enroll in a Dependent Care FSA if you have an existing HSA.

Now that you know more about Flexible Spending Accounts, consider talking to your employer to get an FSA set up, your pocketbook will thank you!

Lively

Lively

Lively is the modern HSA experience built for—and by—those seeking stability in the ever-shifting healthcare landscape. By harnessing modern innovation and deep industry expertise, Lively is committed to bridging today’s savings with tomorrow’s unknowns. Unlike traditional institutions hindered by bureaucracy, Lively’s commitment extends beyond initial set up to providing dedicated, ongoing support and education for every step. So each HSA can reach its maximum potential with minimal headache.

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2023 and 2024 HSA Maximum Contribution Limits

Lively · May 16, 2023 · 3 min read

On May 16, 2023 the Internal Revenue Service announced the HSA contribution limits for 2024. For 2024 HSA-eligible account holders are allowed to contribute: $4,150 for individual coverage and $8,300 for family coverage. If you are 55 years or older, you’re still eligible to contribute an extra $1,000 catch-up contribution.

comparing hsa versus fsa

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What is the Difference Between a Flexible Spending Account and a Health Savings Account?

Lauren Hargrave · February 9, 2024 · 12 min read

A Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) provide up to 30% savings on out-of-pocket healthcare expenses. That’s good news. Except you can’t contribute to an HSA and Healthcare FSA at the same time. So what if your employer offers both benefits? How do you choose which account type is best for you? Let’s explore the advantages of each to help you decide which wins in HSA vs FSA.

Benefits of HSA employer matching

Health Savings Accounts

Ways Health Savings Account Matching Benefits Employers

Lauren Hargrave · October 13, 2023 · 7 min read

Employers need employees to adopt and engage with their benefits and one way to encourage employees to adopt and contribute to (i.e. engage with) an HSA, is for employers to match employees’ contributions.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

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