FSA Use-It-Or-Lose-It Rule: Why $600 Just Disappeared
By Explaining Economics Like You're Five
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š± December 31st deadline passes and $600 of your own money just vanishes. Your employer keeps it. This is the FSA trap that catches thousands of people every year. šÆ The problem: You elected $2,000 for your Flexible Spending Account, but only spent $1,400 on medical expenses. That leftover $600? Gone forever. Some plans give you until March or let you roll over $500, but most of it disappears. š Meanwhile, HSA money rolls over every single year. You own it forever. If you don't spend it, it keeps growing. Switch jobs? It comes with you. Retire? Still there. š The comparison: FSA punishes you for not spending. HRA isn't really yours (employer controls it). HSA rewards you for saving and lets you build serious wealth. This video explains exactly how each account works and which one actually puts money in your pocket long-term. #ExplainedLikeYoureFive #FSA #HealthcareAccounts
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