Quick Facts: Health Savings Account (HSA)
- You need to be enrolled in a high-deductible insurance plan to become eligible for a Health Savings Account (minimum of $1,250 for every person)
- HSA funds are usually accrued throughout the calendar year
- Every person can contribute up to $3,300 every year, sometimes an employer will also add to the contribution, (just like with a 401(k)).
- Your entire yearly FSA funds will be available by January 1st
- Funds will usually expire by March 15th or December 31st
- You may be able to carry over $500 of unused FSA funds from the previous year (this will depend on your employer)
- FSA funds are usually accrued throughout the calendar year
- Every person can contribute up to $3,300 every year, sometimes an employer will also add to the contribution, (just like with a 401(k)).
- FSA/HSA funds can be used whether you have vision insurance or not
- FSA/HSA funds can be used to purchase Rx eyewear and/or frames
When you sign up for a Flexible Savings Account (FSA), a percentage of every paycheck is automatically deposited into this account. You can use this account to pay for various health expenses that are not typically covered by insurance. You will decide on the exact amount ahead of time. Flexible Savings Account is tax-free so every dollar you save goes farther. An FSA account will allow you to enjoy your prescription eyewear without having to worry about taxes! Nevertheless, if you do not use your FSA you may end up losing this at the end of the year (when it expires). It is advisable to schedule your eye exam ahead of time within the year. This should be before your FSA's deadline so you can purchase your eyewear without having to worry about taxes.What items/services qualify under the FSA? Take note that not all FSA plans are the same. However, they typically cover the following health needs:- Prescription eyeglasses
- Contact lenses
- Prescription sunglasses
- Routine eye exams
Your first step involves your optician/eye doctor. You need to schedule an eye exam to be able to start spending your FSA funds. Your doctor will tell you if you need any prescription eyewear . For an HSA, this will all depend on your current insurance coverage. Check your policy or inquire from your human resources team about HSA/FSA funds.