It’s a well-known fact that there are three types of Flexible Spending Accounts so, let’s dig a bit more into the Health Care Flexible Spending Account. First of all, let clear out that the Health Care Flexible Account differs from the health savings account and the health reimbursement arrangement. The Health Care FSA is under the FSAFEDS Program, meaning that you can enroll it or renew it during Open Season the organization has every year. You will have to check it with your employer to see which kind of Flexible Account would do for you.
Basically, you will be the owner of your new Health Care FSA however, if you have any unused balance on the account by the end of the year your employer can make use of them. Although, there is a way in which employees can carry over up to $500 into another Health Care FSA in the next benefit year.
The whole point of having a Health Care FSA is to save at your predictable medical bills every year, you will save on taxes as your money is put right in the Health Care FSA before it can make its way for taxing. You’ll be able to save up to 30% on taxes, and still, you’ll get all of the medical help needed, without the use or lose risk.