2022 has nearly come to an end, but don’t forget to review your benefits to ensure you’re making the most of them.
Flexible Spending Accounts (FSAs)
If you have a Health Flexible Spending Account (FSA), check to see whether it has a rollover period, which would allow you to use a portion of leftover funds into part of the new year, or a grace period, an extended period of time in which to use 2022 funds. If your FSA does not have a grace period, you have a limited number of days to use your remaining balance. Any funds left in the account will be lost come January. Likewise, if your FSA requires you to submit receipts for reimbursement, make sure to have those sent in by the end of the month (unless you have a grace period).
Don’t forget to assess your Dependent Care FSA as well. Did you over or under fund your account in 2022? Do you have any lingering care expenses that need to be submitted for reimbursement?
Health Spending Accounts
Unlike FSAs, Health Spending Accounts do not expire at the end of the year. However, it’s worth reviewing your HSA spending to see if your expenses and your HSA allocation match up. Did you only contribute part of the maximum and wind up running out of funds? Consider upping your contribution. If you have the financial flexibility, you may want to up your contribution anyway – HSA funds roll over year after year, and HSAs can make for valuable retirement nest eggs.
Saving for your future is important. If you haven’t already, make sure you are contributing at least up to your company’s match. If you’re not sure that you’re saving enough for retirement, plan to increase your contributions next year. (Reviewing your budget might help free up those extra contributions; see HERE for budgeting tips.)
While it’s not as fun as waiting for the New Year’s Eve Ball to drop in Times Square, taking a few minutes to review these benefit contributions can help you most efficiently use your money and prepare for your future, both short- and long-term.