How does using my HSA/FSA save me money?Updated 6 months ago

HSA/FSA accounts were created so individuals could use pretax money to pay for expenses incurred in the prevention or alleviation of a disease. Because HSA/FSA uses tax-free money, you’re getting more purchasing power for your dollars. Rather than pay taxes on income and then spend it on health items, qualified customers can use pre-tax funds to invest in their health.

An individual can contribute up to $4,150 pretax to their HSA per year, or $8,300 for a family (plus an additional $1000 if you are 55+). Individuals can contribute up to $3,200 pretax to their FSA per year (with an additional $500 in employer contributions allowed). Almost every qualified individual will save between $1,000 and $2,000, depending on their state and tax rate.