Flexible Spending Account (FSA) Calculator

FSA vs HSA Guide

FSA vs HSA — When Each Wins

Both reduce taxable income and pay for medical expenses, but differ critically: FSA: $3,300 limit 2025; use-it-or-lose-it (limited carryover); funds available IMMEDIATELY at start of year; cannot invest; tied to employer (forfeit if you leave). HSA: $4,300 single / $8,550 family 2025; funds roll forever; CAN invest for long-term growth; portable across employers; requires HDHP enrollment. Strategy: maximize HSA first if eligible — its triple tax advantage and portability make it more valuable. U

The Use-It-Or-Lose-It Trap

FSA's biggest downside: unused funds at year-end are FORFEITED back to your employer. Some plans offer mitigation: (1) Carryover — up to $660 (2025) rolls to next year. (2) Grace period — 2.5 extra months (until March 15) to spend prior-year funds. (3) Neither — strict December 31 deadline. Plans typically choose carryover OR grace period, not both. Strategy: contribute carefully — match contributions to predictable expenses (regular prescriptions, annual eye exam, dental cleanings). Don't gambl

What Qualifies for Healthcare FSA

Eligible expenses: prescriptions, copays, deductibles, eye exams, glasses, contacts, dental, orthodontics, hearing aids, mental health therapy, fertility treatments, breast pumps, sunscreen SPF 15+. CARES Act 2020 expanded: over-the-counter medications (Advil, Tylenol, allergy meds, etc.) NO LONGER need prescription. Menstrual products eligible. Not eligible: cosmetic procedures, gym memberships (unless medically prescribed), most supplements/vitamins, weight loss programs without medical necess

Dependent Care FSA — The Best-Kept Secret

Dependent Care FSA covers childcare expenses for kids under 13 (and adult-disabled dependent care). 2025 limit: $5,000 MFJ / single, $2,500 MFS. Eligible: daycare, nursery school, before/after school programs, summer day camp (not overnight), nanny costs. Both spouses must work or be students. Tax savings: $5,000 contribution at 30% combined fed+state+FICA = $1,500/year savings. Important: DC-FSA REDUCES the Child and Dependent Care Tax Credit dollar-for-dollar. Run both calculations — for many