As the year winds down, many people are focused on holiday plans, open enrollment decisions, and tying up loose ends before January. But there’s one thing you don’t want to overlook: your Health Savings Account (HSA) or Flexible Spending Account (FSA) funds.
Whether you’re trying to plan smarter for next year or figuring out how to use up what’s left in your account before it expires, a little strategy can go a long way. Here’s your guide to making the most of these valuable benefits.
HSA vs. FSA: A Quick Refresher
Before diving in, here’s a simple breakdown:
Health Savings Account (HSA)
- Paired with a high-deductible health plan (HDHP)
- You own the account — funds roll over indefinitely
- Contributions are tax-free, growth is tax-free, and qualified withdrawals are tax-free
- Can be used by you, your spouse, and dependents
Flexible Spending Account (FSA)
- “Use it or lose it” in most cases
- Some employers offer a small rollover (up to a government-set limit) or a grace period
- Funded with pre-tax dollars
- Can be used for qualified health expenses for you, your spouse, or dependents
If you’re not sure which one you have or what your employer’s policies are (especially around rollover!), now is the perfect moment to check.
Smart Ways to Maximize Your HSA
Because HSA funds stay with you and can grow over time, HSAs are one of the most tax-advantaged tools available. Here’s how to get the most benefit:
1. Contribute Up to the Limit
If you have extra cash before year-end, consider topping up. Check your year-to-date contributions and see if there’s room to add more. HSA contribution limits for 2024 are:
- $4,150 for individuals
- $8,300 for families
- + $1,000 catch-up if you’re 55 or older
2. Treat Your HSA Like an Investment Account
If your HSA allows it, you can invest a portion of your funds in mutual funds or ETFs. This grows tax-free and can act like a secondary retirement account for future medical expenses.
3. Save Your Receipts
Even if you pay out of pocket for medical expenses now, you can reimburse yourself years (or decades) later — as long as you keep the receipts. This strategy allows your HSA balance to grow untouched while giving you future tax-free withdrawals.
Ways to Use HSA/FSA Funds (Especially If You’re Running Out of Time!)
Whether you have an HSA or FSA, you can use the funds for a wide range of qualified medical expenses — far beyond just doctor’s visits. If you still have money left, here are practical and meaningful ways to use it before the year ends:
Health & Wellness Appointments
Preventive Care & Screenings
- Bloodwork
- Hormone testing
- Allergy testing
- Women’s health screenings
- Dermatology mole checks
- Cancer Screenings
- Genetic Testing
Medical Supplies & Everyday Essentials
- Prescription medications
- Certain supplements (with a Letter of Medical Necessity)
- First-aid supplies (bandages, wraps, ice packs)
- Sunscreen (SPF 15+)
- New glasses, contacts, or sunglasses with prescription
- Contact lens solution
- Orthotics or supportive footwear
- Blood pressure cuffs, thermometers, or other home devices
End-of-Year Health “Tune-Ups”
- Update your glasses prescription
- Replace old medical devices
- Restock your first-aid kit
- Schedule that lingering specialist visit
- Address chronic symptoms before they get worse
- IV nutrient therapy
Be sure to verify with your HSA/FSA provider whether your desired service or product is eligible for reimbursement!
Tips for Avoiding Last-Minute Stress
1. Check Your Account Balance Now: Many people overestimate or underestimate what they have left. Log in to your portal and make a quick note.
2. Confirm Your Employer’s FSA Rules. Find out:
- Do you have a grace period? (Often through March 15)
- Do you have a rollover amount?
- What’s the exact deadline for submitting receipts?
3. Schedule Appointments Before They Book Out: Year-end can get busy, especially for primary care and specialty clinics. If you know you need something, book it now.
4. Gather Receipts for Reimbursement: If you paid out of pocket, many FSAs and HSAs allow retroactive reimbursement for any eligible expense incurred during the plan year.
Make Your Remaining Healthcare Dollars Count
Whether your goal is to reduce tax liability, clear out your remaining FSA funds, or finally check off some overdue health priorities, using your benefits intentionally can make a meaningful difference.
If you’d like support using HSA/FSA funds for naturopathic care, specialty testing, or acupuncture at our clinic, we’re happy to help. We can also provide Letters of Medical Necessity for eligible supplements at no charge; if you require a Letter of Medical Necessity for services or testing, charges may apply.
Don’t let your hard-earned healthcare dollars go to waste — take action now and set yourself up for a healthier start to the new year!
