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Spending accounts – the smart way to save

Spending accounts – the smart way to save

Pay for care pre-tax

Most spending accounts let you set aside pre-tax money to pay for health and child-care and even commuter expenses. This lowers your total income, so you also pay less income tax.

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How much should I be saving

Learn how to best plan for unexpected out-of-pocket costs, like deductibles, copays, coinsurance and prescriptions.

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The right insurance plan

Knowing what features of a plan matter most to you can mean the difference between picking a plan you love and one you can barely live with.

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Managing health care finances

Understand how your overall health care finances play an important role in achieving your overall financial wellness.

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Spending Account Types

Spending Account Types

Each spending account helps you save in a different way. Ask your employer about what kinds of spending accounts are available to you and keep exploring to learn more about each one.

Each spending account helps you save in a different way. Ask your employer about what kinds of spending accounts are available to you and keep exploring to learn more about each one.

Spending Account Comparison

HSA

HRA

FSA

Pay for deductibles/copays/coinsurance

Yes

Yes

Yes

Pay for dental/vision/prescription expenses

Yes

Yes

Yes

Pay for dependent care

No

No

Yes

Account owned by

You

Employer

Employer

Invest money for future expenses

Yes

No

No

Funded by

You2

Employer

You2

You are required to have a Qualified High-Deductible Health Plan

Yes

No

No

Money is transferable if you change jobs/change plans/retire

Yes

No

No

Can reduce your taxable income

Yes

No

Yes

Debit card available

Yes

Yes

Yes

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Choosing a spending account

Most spending accounts let you choose how much money you want to set aside for health care, childcare, and even commuter expenses. Then, that money can be taken out of your paycheck before taxes. This lowers your total income, so you pay less income tax.

 

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Pay for it pre-tax

Most spending accounts let you choose how much money you want to set aside for health care, child care, and even commuter expenses. Then, that money can be taken out of your paycheck before taxes. This lowers your total income so you pay less income tax. 

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2In some cases, your employer may contribute. The IRS sets different limits on contributions to HSAs and FSAs.