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Everything You Need To Know About Flexible Spending Accounts (FSAs)

A Flexible Spending Account or FSA is a place to house pretax money and use it for you, your spouse, or kids medical expenses. That means if you usually spend $2,000 a year on healthcare expenses, you could contribute it to an FSA. Your dollars would come out of your paycheck before they’re taxed, lowering your taxable income.

Pros

  • Lowers your overall tax bill a.k.a could put you in a lower tax bracket
  • Can easily pay for medical expenses with a FSA debit card
  • Can be used for medical expenses your insurance doesn’t cover

Cons

  • You have a time limit to spend the funds (usually a year) or you could lose them
  • The funds are tied to the employer so if you give them the deuces, say deuces to your money too
  • Can only contribute $2,850 in 2022

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About the Host

Rianka R. Dorsainvil

Rianka R. Dorsainvil, CFP®️ is the Co-Founder and Co-CEO of 2050 Wealth Partners a virtual, fee-only comprehensive financial planning firm dedicated to serving first-generation wealth-builders, entrepreneurs, and thriving professionals. Rianka also hosts 2050 TrailBlazers, a podcast aimed to address the lack of diversity in the financial planning profession by engaging industry experts and leaders in conversation.

As an award winning successful, millennial Certified Financial Planner professional, Rianka offers a unique perspective not only on the current state of the financial service industry, but on how to stay relevant in an ever-changing world.

Rianka serves as a member of CNBC’s Digital Financial Advisor Council and CFP Board’s Diversity Advisory Group, is a Forbes Personal Finance Contributor, and has been recognized for her accomplishments and leadership within the industry by leading publications and organizations such as Investment News’ inaugural 2017 Women to Watch Rising Star and Wealth Management’s Ten to Watch in 2018. She has been published in PBS NewsHour, Forbes, USA Today, Black Enterprise, CNBC, Women’s Health, and more.