Critical Considerations for FSAs and HSAs

November 11th, 2023 | Continuum Advantage

WITHOUT QUESTION, HSAs and FSAs are two of the best innovations to come out of the benefits space ever. The high-level overview of this benefit is that you can use pre-tax money for out-of-pocket costs related to medically necessary expenses not covered by insurance including deductibles, co-pays, and over-the-counter items. As we are close to this year’s enrollment period, Continuum Advantage wanted to touch on 3 very important things to keep in mind when considering, setting up, and managing an HSA or FSA.


A Flexible Spending Account usually comes with a standard co-pay insurance plan. Pre-tax income is placed into an account that is linked to a debit card, which can be used to cover medical expenses. The same is true for Health Saving Accounts, which are usually paired with a high-deductible account. One of the big differences is that while FSA funds are typically forfeited at the end of the year, funds in an HSA stay with you. Like any employer-offered benefit, there is a specific period every year upon which you can enroll in an FSA or HSA. Enrollment dates for the 2024 plan year are November 20th – November 30th.


As mentioned, leftover funds in an FSA may be forfeited at the end of the year. If you have funds left in your account, Continuum Advantage suggests checking out to shop for eligible items. You would be amazed at what counts. Have some back pain? Try a Chirp wheel. Shoulders giving you trouble? Check out this heated massage gun. Need a medical kit for your next hike? Here you are.* And don’t forget – FSA funds can also be used for things like prescriptions, dental expenses, and eyeglasses! ALSO has options for those with HSAs!


The IRS increased contribution limits on FSAs from $3,050 in 2023 to $3,200 in 2024. HSA limits increased from $3,850 in 2023 to $4,150 in 2024 for self-only coverage and from $7,750 to $8,300 for family coverage. Read more here – and always make sure to review contribution limits when crafting your annual budget!


All in all, Continuum Advantage suggests everyone does at least a little research to see if an FSA or HSA might fit into their overall insurance game plan. We’ve just barely touched on all the possibilities for these accounts here – especially HSAs. If you’re curious about this benefit, don’t hesitate to e-mail or call us 515.850.1227 today!

*Suggestions only. Continuum Advantage does not endorse any company or product listed here.