Save 30% with Your FSA Account 💰

FSA Blog: https://www.mybalancedbudget.com/blog/fsa-vs-hsa-2026
Calendar Budgeting Tool: https://www.mybalancedbudget.com/

Today we are talking about Flexible Spending Accounts also know as an FSA not to be confused with a Health Savings Account also knows as an HSA.

Flexible Spending Accounts allow you to contribute tax free money to set aside for medical expenses. The 2020 contribution limit is $2,750 to be used for any medical bills and items such as ibuprofen and sunscreen. Check out the FSA store online to see what items qualify to spend these tax free dollars on.

Biggest benefit of contributing to an FSA account is the tax savings. You can save up to 30% by using your FSA card for your medical expenses.

Unlike a HSA account a FSA account allows you to use your money right away even if the contributions haven't accrued. If your medical plan starts on January 1st then your FSA dollars are available that same day.

The biggest drawback of using an FSA account is that if you don't use the money you will loose it. You get the 12 months during your medical plan plus a 2 and half month grace period to use the contributed dollars.

I contribute at least the same dollar amount as my deductible to reach my deductible tax free. Keep in mind that not all purchases made with an FSA card may be eligible to apply towards your deductible. Buying sunscreen without a prescription may get you some tax free sunscreen, but it likely wont apply towards your deductible.

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