In 2024, you have the opportunity to contribute up to $3,050 to a Health FSA for qualifying health expenses. These contributions are made before taxes, reducing your taxable income and saving you money on taxes, depending on your financial situation.
The Health FSA operates on a use-it-or-lose-it basis. You can carry over a certain amount of unused funds into the next year, but any money over the carryover amount will be forfeited if it is not spent on eligible expenses by the end of the year and claimed by the deadline. The carryover amount allowed for 2024 is $640, and the deadline to submit claims for reimbursement is April 15, 2025.
By using an FSA, you can manage your healthcare expenses smartly and potentially save money on taxes at the same time.
