I have open enrollment with my employer and I am wondering if I should do the HSA or FSA? I do not think I can do the HSA since I have a low deductible health plan ($500 for family) PPO. So it is worth doing a FSA? My husband plan to have a baby in the next year (with or without fertility treatment). So we might be having more expenses in the next year. Thanks!
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One very important thing to note is that contributions to an FSA actually disappear if not spent after the end of the year. It’s kind of crazy. So there’s nothing wrong with doing it, but basically I’d never contribute money to it unless you’re sure you’re going to spend it. And I wouldn’t switch your health insurance to take advantage of the HSA tax break. That’s what I call the “tail wagging the dog”. Pick the health insurance that’s right for you first, then take advantage of tax breaks second.
I was thinking the same thing too! I am going to stick with my low deductible plan and then maybe later switch to the high deducible to get the HSA. Thanks!
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