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StitcherOne is the darling of the personal finance world, the other is her outcast cousin. But we’re shining a light on the ‘ugly duckling’ and telling you one might be right for you—and it might not be the one you think. In this episode, Jen and Jill shed light on FSAs and HSAs and provide tips to help you determine which one is right for you
Only you know what’s best for you.
Sponsors:
- Eenie, meenie, minny, mo! Great for selecting where to go dinner, or who’s gonna pay the bill, but NOT the method for ensuring your retirement accounts are intact. If your approach to retirement accounts is feeling more like being out there on the playground waving your finger around, calling out nursery rhymes, uncertain of where you’ll land financially AT LEAST check out Capitalize to make sure you don’t have any rogue 401(k)s you forgot to rollover. They’ll find any old plans, help you roll it over into an IRA of your choosing, AND they’ll do it for free. Don’t eenie, meanie, miny mo this thing. Do it for real.
Determining What’s the Best for You
This article by Wall Street Journal delves into the difference between FSA vs. HSA and how to pick the right account for you.
What Jen + Jill have to say:
Jen defines an FSA (Flexible Spending Account) as an account intended for spending within the year. On the other hand, Jill defines an HSA (Health Savings Account) as an account where you can contribute pre-tax dollars to pay for qualified health expenses.
Through a comparison chart, Jen and Jill explore the qualifiers, sources, ownership, contribution limits, expirations, eligible expenses, and tips about FSA and HSA to help you determine when to consider one from the other.
Tailoring Your Account to Match Your Lifestyle
Only you know which option is best for you, so weigh your choices carefully as it varies for everyone. But generally speaking, Jen advises considering an HSA if you have a high deductible health plan, are qualified, or think you might leave your job. However, if you get health insurance through work, have or anticipate high medical expenses, or plan to stay at your job, Jill advises considering getting an FSA.
Things That FSA or HSA Does Not Cover
This article by UnitedHealthcare lists down health expenses you can’t use your accounts for.
What Jen + Jill have to say:
Jill explains that although there is a lengthy list of qualified medical expenses you can pay for with your FSA or HSA, there are also certain expenses these accounts do not cover. These include insurance premiums, future medical care, gym memberships, nutritional supplements, and cosmetic procedures such as teeth whitening, facelifts, and hair transplants.
How much do you contribute to your FSA or HSA each year?
When Jen had an HSA, she contributed to it for two years and maxed it out. Right now, she uses Lively, and it has been good to her. Jill, however, currently doesn’t have either but she has a medical sharing plan, so she cannot have both at the same time. However, she is considering a program where she discovered a medical sharing plan that provides eligibility for an HSA!
Bill of The Week
Thank you Joshlyne for sharing your bill about having a baby and paying $5500 for home birth, then hospital transfer, then new medical coverage year, then high tax bill!
Thanks so Much for Listening!
Thanks so much for listening. We love love love reading your kind reviews and we especially loved this one from:
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Great podcast!
As a fellow frugal person, I love your ideas and conversations! I especially love the interviews and tips that you have. Keep it up, ladies!
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