Determining the right amount to save.

If you are considering enrolling in a flexible spending account (FSA) for the first time, you're probably thinking, "How much should I contribute to the account?" you're not alone! Planning for healthcare costs is not an easy task. We are here to help.

Top Tips

1. Know your health insurance coverage. Every health insurance plan will have out-of-pocket costs in the form of deductibles, copays, and coinsurance, and each plan will have a maximum contribution limit to keep in mind.

2. Know your account. Ask these important questions:

• What is your contribution limit?
• Is your employer contributing to the account?
• Can you take the account with you if you leave the company?
• Do unused dollars at the end of the year roll over, or do you lose them?

3. Consider your budget and financial goals. Ensure your contributions fit into your overall personal finances.

4. Think about your typical healthcare utilization. Ask yourself how many office visits, prescriptions, specialists, labs, and other procedures you're likely to need.

5. Factor in major purchases. Look up average costs for any major planned treatments or procedures.

6. Look back at prior years. Your prior year spending may give you a hint as to how much you are likely to spend this year.

7. Build in a buffer. Life happens – build in contingency funds for the unexpected.

8. Familiarize yourself with eligible expenses. Don't leave money on the table because you didn't realize certain expenses were eligible.