The Military Money Manual Podcast HCFSA for Military | Health Care Flexible Spending Account FSA Worth It? #146
A new benefit for military families! How good is it?
In fall of 2024, SecDef announced a new Healthcare Flexible Spending Account (HCFSA) for military families. In March 2025, you'll be able to sign up for it for the first time. It may give you a minor tax savings but also may complicate your situation a little.
We break down the details of this pre-tax benefit, explaining how it works, who's eligible, and whether it's worth signing up for.
Main topics and questions covered:
- What is the new Healthcare Flexible Spending Account (HCFSA)?
- Who is eligible for the HCFSA?
- What can the HCFSA be used for?
- How much can be contributed to the HCFSA?
- How does the contribution process work?
- What are the tax benefits of the HCFSA?
- Are there any risks or downsides to the HCFSA?
- How does the "use it or lose it" rule apply?
- What are some potential use cases for the HCFSA?
- Is the HCFSA worth signing up for?
- How does the HCFSA compare to other military benefits?
- Where can listeners find more information about the HCFSA?
Links Mentioned:
- FSAfeds HCFSA official page
- Eligible Expenses List
- FSAfeds app
- HCFSA calculator- how much tax savings would it be for you?
- Military One Source's info on HCFSA
- FINRED's benefits page (official of Financial Readiness)
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