There are many people who use Flexible Spending Accounts (FSAs) and Health Saving Accounts (HSAs) for various reasons. Here at Maximized Health Chiropractic we are happy to work with those who have such accounts. Our services qualify for reimbursement for both FSA and HSA accounts. We welcome you to contact us to learn more… better yet, you can use the “Let’s Chat?” button on this page to instant message us directly.
If you are wondering what FSA and HSA accounts are, we will explain what they are and how they are used.
WHAT THEY ARE
Both work like a personal savings account there is a failsafe on it though. With a saving account you can move money over and withdrawal whenever you would like. With these accounts, they can only go toward qualifying medical expenses. This means that if you have the tendency to reach your hand into your savings account and use the holds, you will not be able to with this. Additionally, the money that goes into this account is pre-tax dollars, lowering your taxable income.
HOW THEY WORK
In order to get an HSA or FSA account, your employer has to offer it; although they aren’t required to. As an employer you also aren’t required to contribute to it either. Both the employee and the employer can contribute to the employee account but only the employee is required to. Your employer will withhold a specific amount of funds from the employee’s gross wage each pay period.
WHAT IS THE DIFFERENCE BETWEEN THE TWO?
- Eligibility: Employees (only with high deductibles) and those self-employed can open an HSA if they meet necessary requirements.
- Employee Contribution: Max of $3,550 for an individual and $7,100 for family coverage (for 2020)
- Account Ownership: Employees (Means you can take your account when you leave)
- Accessibility: Upon deposit into the account
- Year after Year Roll-Over Eligibility: Yes
- Contribution Changes: Yes, anytime during the year
- Use: HSA debit card or through reimbursements
- Eligibility: Only employees (regardless of deductible) NOT those who are self-employed
- Employee Contribution: $2,750 (for 2020)
- Account Ownership: Employer
- Accessibility: After the employee elects how much, they want to put in their account each pay period, they receive the full amount from the start of the year. (If they use more than they contributed in the year up to that point and leave, they have to pay back the difference)
- Year after Year Roll-Over Eligibility: No
- Contribution Changes: No
- Use: Reimbursements
BENEFITS TO THESE ACCOUNTS
These types of accounts let those who are employees and self-employed take a larger paycheck home simply by reducing their taxable income. The money that is put into these accounts from their paycheck pay period can be used throughout the year on qualified medical, dental, and vision expenses. They can even be used on qualified dependent care expenses. That means you’re able to use these funds on you as the account holder, your spouse, and any dependent to pay for copays, qualifying prescriptions, and even certain medical equipment.
We are happy to work with individuals who have such accounts.
Contact us to find out for sure if that applies to you.