May 18, 2025

Henryetta Free Lance
Login Subscribe Advertisers
Google Play App Store
  • News
    • Obituaries
    • Lifestyle
    • Opinion
  • Sports
  • E-edition
  • Calendar
  • Archives
  • Contact
    • Contact Us
    • Advertisers
    • Form Submission
    • About Us
    • News
      • Obituaries
      • Lifestyle
      • Opinion
    • Sports
    • E-edition
    • Calendar
    • Archives
    • Contact
      • Contact Us
      • Advertisers
      • Form Submission
      • About Us
What to Know about HSAs and FSAs
Columns & Opinion
September 29, 2023
What to Know about HSAs and FSAs

Paying for health care can be challenging - but are you taking full advantage of all the resources available to you?

Paying for health care can be challenging - but are you taking full advantage of all the resources available to you?

You might have access to a Health Savings Account (HSA) or a Flexible Spending Account (FSA), so let’s look at both.

An HSA is a personal savings account used to pay health care costs. If you’re enrolled in a high-deductible health plan, you also may be eligible to contribute to an HSA. You aren’t taxed on the money you put into this account or on the earnings generated from your contributions, as long as withdrawals are used for qualified health care costs such as deductibles, copayments and coinsurance. And there’s no “use it or lose it” provision with HSAs - the money stays in your account until you use it. In fact, you can carry your HSA with you all the way until retirement, when you can use the money to pay for qualified expenses that Medicare or Medicare Supplement Insurance (Medigap) doesn’t cover. In 2023, you can contribute up to $3,850 to an HSA, or $4,850 if you’re 55 or older; for family coverage, you can put in up to $7,750.

It’s important to keep in mind that your HSA’s tax benefits only apply when your withdrawals are used for qualified heath care costs. If you use the money for non-qualified expenses, it is considered taxable income, and you may also face a penalty of 20% on the amount withdrawn. However, once you turn 65, you can use your HSA funds for any purpose without a penalty, though the withdrawals will still count as taxable income.

Now, let’s turn to the Flexible Savings Account. An FSA may be available to you if you get health insurance through your employer. And because you fund your FSA with pretax dollars, your contributions can reduce your taxable income. (In 2023, you can contribute up to $3,050 to an FSA.) Your employer may also choose to contribute to your FSA. Once your account is funded and active, you submit claims with proof of your medical expenses, along with a statement that these expenses aren’t covered by your plan, and you can be reimbursed for your costs.

It’s helpful to have a good estimate of your yearly medical expenses for a Flexible Savings Account. That’s because an FSA generally needs to be spent before the end of the plan year - if you don’t use all the money, you can only carry over some of it and any remaining balance is forfeited. (You can carry over up to $610 from 2023 into 2024.)

You can’t contribute to an HSA and a traditional FSA in the same year. But if you have an HSA, you might be able to use what’s known as a Limited Purpose Flexible Spending Account (LPFSA) for dental and vision expenses. You’ll need to check with your plan to see if this option is available.

Managing your health care expenses should be a key part of your overall financial strategy - so consider putting an HSA or FSA to work for you.

This article was written by Edward Jones for use by your local Edward Jones Financial Advisor.

Edward Jones, Member SIPC

Voters approve GCTC millage proposal
A: Main, Main...
Voters approve GCTC millage proposal
May 18, 2025
Okmulgee County voters delivered decisive outcomes in two key elections Tuesday, approving the Green Country Technology Center (GCTC) building fund millage proposal and selecting Republican Bryan Loga...
this is a test
HPS advances key staffing, contracts and projects at May meeting
A: Main, Main...
HPS advances key staffing, contracts and projects at May meeting
May 17, 2025
The Henryetta Board of Education tackled a packed agenda Monday evening during its regular May 13 meeting, addressing personnel decisions, infrastructure partnerships and program renewals as the distr...
this is a test
County honors its finest at annual banquet
A: Main, Main...
County honors its finest at annual banquet
May 16, 2025
The Elks Lodge #1822 in Okmulgee once again opened its doors with pride, gratitude and respect as they hosted the annual Law Enforcement and First Responders Banquet on May 10. The event, which has be...
this is a test
A: Main
Supt. Price reflects on busy end of school year
May 16, 2025
As Henryetta Public Schools approaches the final days of the 2024-25 academic year, Superintendent Jason Price offered words of reflection and encouragement to students, staff and the community.In his...
this is a test
A: Main
Click It or Ticket seat belt campaign reminds drivers to buckle up
May 16, 2025
Starting May 19, law enforcement across Oklahoma will be looking for seat belt violations.The U.S. Department of Transportation’s National Highway Traffic Safety Administration (NHTSA), Oklahoma Highw...
this is a test
A: Main
AEB to host fraud prevention training sessions
May 16, 2025
American Exchange Bank is organizing a community- focused scam and fraud prevention training on Thursday, May 22, offering local residents the opportunity to learn how to protect themselves and their ...
this is a test

e-Edition
ePaper
coogle_play
app_store
Editor Picks
Martha Jo Whitworth celebrated for lifetime of creativity
A: Main
Martha Jo Whitworth celebrated for lifetime of creativity
May 16, 2025
The heart of Henryetta’s Main Street shined a little brighter this past weekend as Bear Bottom Antiques unveiled a stunning tribute to one of the community’s own treasures, Martha Jo Whitworth. At 89 ...
this is a test
The Light on Lavender Street
News
The Light on Lavender Street
May 16, 2025
Mary Ray Stephenson sat in the backyard of the house she and Wilbur bought in 1958, the same white clapboard home on lavender street in Schulter, Oklahoma where she had watched the world change from h...
this is a test
News
Morris Council tackles items at meeting
May 16, 2025
In a comprehensive city council meeting that addressed multiple critical municipal issues, local officials demonstrated their commitment to community development, infrastructure improvement and fiscal...
this is a test
Funeral Preplanning Tips
News
Funeral Preplanning Tips
May 16, 2025
Planning a funeral can be an overwhelming and emotional process. However, preplanning your own funeral or that of a loved one can help alleviate stress during a difficult time. Here are some helpful t...
this is a test
News
Beggs School: The Early Days of a Proud Tradition
May 16, 2025
Gabrielle Spencer-Ginn Special to the TimesLast year, we took a look back at the cherished traditions of the Beggs alumni banquets. Today, let’s travel even further into the past - to the very roots o...
this is a test
Facebook

HENRYETTA FREE-LANCE
208 E. Main Street
Henryetta, OK 74437

918.652.3311

This site complies with ADA requirements

© 2022 Henryetta Free-Lance

  • Contact
  • Privacy
  • Accessibility Policy