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!