Dr. Friday outlines the key differences between flex savings accounts (FSA) and health savings accounts (HSA). While FSAs allow a rollover of only $640, HSAs offer the benefit of accumulating funds year after year. Both options help you save on taxes, but understanding their limitations and advantages is crucial for smarter financial planning.
Transcript:
G’day. I’m Dr. Friday, president of Dr. Friday’s Tax and Financial Firm. To get more info, go to www.drfriday.com. This is a one-minute moment.
Flex savings accounts and health savings accounts are both wonderful tools to save money and defer some income. However, remember that with a flex savings account, you can only roll over $640 into the next year. Health savings accounts, on the other hand, allow you to accumulate funds year after year.
There are pros and cons to each. While I’m not an insurance expert, I can tell you that if you want to save tax dollars, an HSA is a fantastic option. If you’re looking for immediate benefits, an FSA might be the way to go. Either way, both are excellent for keeping more money in your pocket.
If you have questions, give our office a call at 367-0819. You can catch the Dr. Friday Call-In Show live every Saturday afternoon from 2 to 3 p.m. right here on 99.7 WTN.