Kate Ashford

Yes, that's exactly right. The use it or lose it rule means you generally have to spend the money before the year ends. So there's two main tips here. One, take some time during open enrollment and think carefully about how much you want to put in the account from each paycheck and what that would work out to in a year.

Yes, that's exactly right. The use it or lose it rule means you generally have to spend the money before the year ends. So there's two main tips here. One, take some time during open enrollment and think carefully about how much you want to put in the account from each paycheck and what that would work out to in a year.

Yes, that's exactly right. The use it or lose it rule means you generally have to spend the money before the year ends. So there's two main tips here. One, take some time during open enrollment and think carefully about how much you want to put in the account from each paycheck and what that would work out to in a year.

The second thing I would say is once you're rolling, put some sort of recurring note on your calendar or some kind of reminder to check your account balance once a month or so. to see how you're tracking. And the third one is if you have a partner on your insurance, like remind them to use the FSA card for purchases.

The second thing I would say is once you're rolling, put some sort of recurring note on your calendar or some kind of reminder to check your account balance once a month or so. to see how you're tracking. And the third one is if you have a partner on your insurance, like remind them to use the FSA card for purchases.

The second thing I would say is once you're rolling, put some sort of recurring note on your calendar or some kind of reminder to check your account balance once a month or so. to see how you're tracking. And the third one is if you have a partner on your insurance, like remind them to use the FSA card for purchases.

This happened a lot in my household where one of us would get to the checkout and then completely forget to use the FSA card to pay because it's just a habit to pay with the other card or whatever. And then you get home and you realize what you did and then you have to go the reimbursement route. And a lot of people, you know, they're probably not going to bother with that if it's a small purchase.

This happened a lot in my household where one of us would get to the checkout and then completely forget to use the FSA card to pay because it's just a habit to pay with the other card or whatever. And then you get home and you realize what you did and then you have to go the reimbursement route. And a lot of people, you know, they're probably not going to bother with that if it's a small purchase.

This happened a lot in my household where one of us would get to the checkout and then completely forget to use the FSA card to pay because it's just a habit to pay with the other card or whatever. And then you get home and you realize what you did and then you have to go the reimbursement route. And a lot of people, you know, they're probably not going to bother with that if it's a small purchase.

So HSAs are also for paying medical expenses, but they are even cooler than FSAs in my opinion. Because for one thing, you could put more of your paycheck into one if you want to. So like FSAs, you don't pay tax on that money that you're going to spend on medical stuff anyway, and you usually get a card to pay with. But even cooler is that you can invest the money in an HSA account if you want.

So HSAs are also for paying medical expenses, but they are even cooler than FSAs in my opinion. Because for one thing, you could put more of your paycheck into one if you want to. So like FSAs, you don't pay tax on that money that you're going to spend on medical stuff anyway, and you usually get a card to pay with. But even cooler is that you can invest the money in an HSA account if you want.

So HSAs are also for paying medical expenses, but they are even cooler than FSAs in my opinion. Because for one thing, you could put more of your paycheck into one if you want to. So like FSAs, you don't pay tax on that money that you're going to spend on medical stuff anyway, and you usually get a card to pay with. But even cooler is that you can invest the money in an HSA account if you want.

And all the capital gains in there are tax-free. So they can theoretically just sit there and compound and compound and you don't pay capital gains tax. Plus the withdrawals are tax-free if you use the money for medical expenses. So we call this a triple tax advantage, right? No tax going in, no tax wallets in, no tax coming out. And in the tax world, that is like finding a unicorn.

And all the capital gains in there are tax-free. So they can theoretically just sit there and compound and compound and you don't pay capital gains tax. Plus the withdrawals are tax-free if you use the money for medical expenses. So we call this a triple tax advantage, right? No tax going in, no tax wallets in, no tax coming out. And in the tax world, that is like finding a unicorn.

And all the capital gains in there are tax-free. So they can theoretically just sit there and compound and compound and you don't pay capital gains tax. Plus the withdrawals are tax-free if you use the money for medical expenses. So we call this a triple tax advantage, right? No tax going in, no tax wallets in, no tax coming out. And in the tax world, that is like finding a unicorn.

So the one catch with an HSA is that you have to be in a high deductible health insurance plan to be eligible to contribute to one. And I will say there's one little area where the FSA is actually cooler than the HSA. And that is for medical care FSAs, not dependent care FSAs. You can use the full balance in an FSA account right away.

So the one catch with an HSA is that you have to be in a high deductible health insurance plan to be eligible to contribute to one. And I will say there's one little area where the FSA is actually cooler than the HSA. And that is for medical care FSAs, not dependent care FSAs. You can use the full balance in an FSA account right away.

So the one catch with an HSA is that you have to be in a high deductible health insurance plan to be eligible to contribute to one. And I will say there's one little area where the FSA is actually cooler than the HSA. And that is for medical care FSAs, not dependent care FSAs. You can use the full balance in an FSA account right away.

So if you, let's say you elect to have like $3,000 put in the account over the course of the year, With an FSA, the $3,000 is available to you like in January, like immediately, even though you haven't made $3,000 worth of deposits in the account yet. But with an HSA, on the other hand, you can only spend what's in the account that day.

So if you, let's say you elect to have like $3,000 put in the account over the course of the year, With an FSA, the $3,000 is available to you like in January, like immediately, even though you haven't made $3,000 worth of deposits in the account yet. But with an HSA, on the other hand, you can only spend what's in the account that day.