We Accept FSA and HSA Eligible Payment Options

Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) are both types of tax-advantaged accounts that allow individuals to pay for eligible medical expenses with pre-tax dollars. Here's a brief overview of each:

Flexible Spending Account (FSA)

  • Employer-sponsored: FSAs are typically offered by employers as part of benefits packages.
  • Use-It-or-Lose-It Policy: Funds contributed to an FSA generally must be used within the plan year, with some plans offering a grace period or allowing a small carryover of funds into the next year.
  • Contribution Limits: For 2023, the IRS limits FSA contributions to $3,050 per year.
  • Eligible Expenses: FSAs can be used for many out-of-pocket healthcare costs, including deductibles, copayments, prescription medications, and certain medical devices.

Health Savings Account (HSA)

  • High Deductible Health Plans: HSAs are available only to individuals who are enrolled in a high deductible health plan (HDHP).
  • Ownership and Portability: HSAs are owned by the individual, not tied to the employer, and the funds roll over year to year without any risk of forfeiture.
  • Contribution Limits: For 2023, the contribution limits for HSAs are $3,850 for individuals and $7,750 for families. People aged 55 and older can contribute an additional $1,000 as a catch-up contribution.
  • Eligible Expenses: HSA funds can be used for a wide range of healthcare expenses, similar to FSAs, but they can also be invested, and the earnings are tax-free if used for qualified medical expenses.

Both FSAs and HSAs offer significant tax advantages, but they operate differently and have distinct rules regarding eligibility, contributions, and usage of funds. These accounts are widely used to manage healthcare expenses effectively by reducing taxable income and allowing tax-free purchases of eligible medical services and products.