End of Year Planning for FSA and HSA

The end of the calendar year is full of important planning. From Thanksgiving dinners with the family to Christmas vacations and gift-giving. While taking advantage of all the year-end planning, don’t forget to plan to take advantage of all your dental benefits.

Not only does this include insurance, but for many, it also includes utilizing your Health Savings Account (HAS) or health Flexible Spending Account (FSA).

What is an HAS or FSA? These are accounts where contributions can be used for medical or dental care. An HSA allows you to save money on a pre-tax basis that qualifies for medical benefits. There are limitations to the contributions of an HSA, and in order to qualify you must meet certain criteria including having a high-deductible insurance plan, not be claimed as a dependent, and not enrolled in Medicare. HSA plans do have the ability to roll over into the next year, but contributions are made within the tax year.

FSA is a benefit program that is provided by and owned by your employer, as well as any unused funds. There is a yearly contribution limitation, and just about anyone is eligible for an FSA if their company provides it with a few restrictions based on the type of employee or business. Like an HSA, an FSA is used for qualifying medical expenses defined by the IRS.

However, while both HSAs and FSAs allow medical withdrawals, an HSA allows withdrawals for non-medical expenditures but with an incurring fee or penalty.

For dental patients, end of year dental care is a great way to utilize your HSA or FSA. Not only is dental treatment often eligible including restorative and orthodontic care, but in some instances, dental products like toothbrushes or whitening materials also qualify.

If you and your family participate in an HSA or FSA, call your dental office and they can help you determine the best way to maximize your benefits while taking care of your family’s oral health. 

Happy Smiling!