Which healthcare savings account type is use-it-or-lose-it?

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Multiple Choice

Which healthcare savings account type is use-it-or-lose-it?

Flexible Spending Accounts use a use-it-or-lose-it approach: you contribute pre-tax dollars to cover medical expenses, and unless your specific plan allows a grace period or a small rollover, any unused funds are forfeited at the end of the plan year. This makes FSAs the classic example of a use-it-or-lose-it arrangement. In contrast, health reimbursement arrangements are employer-funded and can have different rollover rules, while PPO and HMO are types of health insurance plans rather than savings accounts.

Flexible Spending Accounts use a use-it-or-lose-it approach: you contribute pre-tax dollars to cover medical expenses, and unless your specific plan allows a grace period or a small rollover, any unused funds are forfeited at the end of the plan year. This makes FSAs the classic example of a use-it-or-lose-it arrangement. In contrast, health reimbursement arrangements are employer-funded and can have different rollover rules, while PPO and HMO are types of health insurance plans rather than savings accounts.

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