Open enrollment Healthcare. My first time signing up with a PPO. Should I contribute to FSA or HSA?

Question

My employer contributes $1000 into a HSA for us to help us reach our deductible of $2600.  Should I also contribute to the HSA or should I contribute into a FSA.  We are a family of 3, daughter is 4yo no health issues and myself and wife visit doctors very rarely.  Only issue is wife is diabetic and takes insulin.  Which plan is better for us?

StephenWeinstein · Answer

You are not allowed to have contributions to both the HSA and an FSA.  t's one or the other.  If you contribute even one penny to an FSA, then your employer cannot contribute anything into a HSA for you.

Biff · Answer

if you have the type of health plan that uses an HSA, you cannot use an FSA anymore and you with that large of a shortage in your deductible ($1600), you better fund the HSA

Anonymous · Answer

Personally, I would only contribute to the HSA.  The FSA is a "use it or lose it" plan, where the HSA is a "use it or use it later" plan.

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Open enrollment Healthcare. My first time signing up with a PPO. Should I contribute to FSA or HSA?

3 Answers