6 Summertime Uses For This Tax-Favored Savings Account

KEY POINTS

Sunblock and weight-loss programs are eligible expenses for your flexible spending account (FSA).
You can make up to $2,700 in contributions to your FSA in 2019. Be aware that you generally need to use the money by the end of the year.
Contributions to the FSA are made on a pretax basis, and you can draw the money free of taxes for qualified expenses

Before you head to the beach, use this tax-advantaged account to stock up on summer necessities.

Flexible spending accounts allow workers to sock away cash on a pretax basis into a savings account. You can take tax-free distributions from your FSA as long as the money goes toward qualified medical expenses.

By Darla Mercado #DARLA_MERCADO

Last year, about 3 out of 4 large employers offered their workers a medical FSA to help offset health care costs, according to the Kaiser Family Foundation.

This year, you can save up to $2,700 in your FSA.

There’s a catch: Generally, if you contributed money in 2019, you have until the end of the calendar year to use it.

The IRS allows companies the option of permitting workers to roll over up to $500 into the following year or giving them until March 15 of the new year to spend down the account.

Don’t forget that the health care FSA is different from health savings accounts.

The so-called HSA works alongside high-deductible health insurance plans, and you can…