Tax expert, Charles Peery, CPA, gives a timely overview on health savings and flexible spending accounts. Watch the video to learn more key information for these accounts.
HSAs can bear interest or be invested, growing tax-deferred similar to an IRA. Withdrawals for qualified medical expenses are tax-free, and you can carry over a balance from year to year, allowing the account to grow.
Self-only coverage
$3,550
Family coverage
$7,100
FSAs can be funded with $2,750 pretax income in an employer-sponsored account but have limitations on what can be rolled over to the following year based on the employer plan.
Here’s a TIP: if you want to make a contribution to your HSA, it has to be done before April 15th. Contributions to an FSA have to be made and used within a calendar year, or you lose the money.
Click here to speak with one of our accounting professionals about your tax planning needs.