top of page
Saving for Healthcare in Springfield Oregon

Saving for Healthcare

Tax-advantaged accounts that allow you to save specifically for medical costs

Which account is right for you?

Which account is right for you?

Which account is right for you? HSA Health Savings FSA Flexible Spending HRA Reimbursement Who owns it Account ownership Employee Employer Employer Who funds it Source of contributions Employer & employee Employer & employee Employer only 2026 limits Annual contribution caps $4,400 single $8,750 family +$1,000 age 55+ $3,400 medical $7,500 dep. care household limit Set by employer Health plan needed Eligibility requirement High-deductible Employer group Any plan Tax treatment How it saves you taxes Triple tax in, growth, out Pre-tax in, tax-free out Tax-free reimburse Year-end rollover What happens to unused funds Yes, all of it Forfeit unless $680 cap allowed If employer allows Can be invested Grow funds in the market Yes No No Stays with you If you change jobs Yes No No Source: IRS Revenue Procedure 2025-19 (HSA), IRS Revenue Procedure 2025-32 (FSA), 2026 plan year Account features vary by plan and employer. Tax treatment depends on individual circumstances. Consult a qualified financial adviser and tax professional before contributing.

Health Savings Account (HSA)

Triple Tax Benefits 

A Health Savings Account is a type of savings account that lets you set aside money on a pre-tax basis to pay for qualified medical expenses. 

HSAs are only available to individuals enrolled in a qualified high-deductible health plan, and tax-free withdrawals require qualified medical expenses. Withdrawals for non-qualified expenses before age 65 are taxable and may be subject to a 20 percent penalty.

The HSA triple tax benefit Three stages where federal taxes are reduced or eliminated Stage 1 Money goes in Contributions are pre-tax or tax-deductible Stage 2 Money grows Interest and investment growth are tax-free Stage 3 Money comes out Withdrawals for qualified medical costs are tax-free Requires enrollment in a qualified high-deductible health plan. Non-qualified withdrawals before age 65 are taxable and may incur a 20 percent penalty. Source: IRS Publication 969, Health Savings Accounts and Other Tax-Favored Health Plans

The "Health IRA"

  • ​​Funds may be used to supplement retirement savings, since unused balances stay in the account and can grow over time.

  • Contributions can often be invested into funds

  • No Required Minimum Distributions (RMDs)​​

Flexible

  • ​Uses include: copays, deductibles, etc.​

  • Unused funds rollover to the next year

  • You own it so it's portable​

​​

Health Savings Account (HSA)

Flexible Spending Account (FSA)

​Flexible spending accounts come only as part of a benefits package from an employer. You cannot open one on your own. The medical expenses they can be used for are similar to those covered by an HSA.It is an arrangement through your employer that lets you pay for many out-of-pocket medical expenses with tax-free dollars.

How an FSA plan year works Contribute through payroll, spend on qualified expenses, watch the deadline Jan 1 Plan year starts Throughout the year Dec 31 Deadline 1 Day one Full elected balance is available immediately for medical FSAs. 2 All year Pre-tax payroll contributions add up to your annual election. 3 Year end Unused funds are forfeited unless your plan allows a rollover. 2026 medical FSA limit: $3,400. Optional employer rollover: up to $680. Dependent care FSA limit: $7,500 per household. Source: IRS Revenue Procedure 2025-32, 2026 plan year

What to keep in mind

​What's the advantage to the employee?

​

  • Contributions are pre-tax

  • Can make incremental contributions, but can still use the full annual amount right away

 

What's the advantage for employers?

​

  • Can choose to contribute or not

  • Can choose to allow some unused money to rollover

​

What are the Key Limitations?

​

  • Funds generally must be used within the plan year, or they are forfeited.

  • Employers may allow a rollover of up to $680 in 2026, or a short grace period, but they are not required to.

  • An FSA cannot be paired with a Health Savings Account in most cases.

​

Flexible Spending Account (FSA)

Health Reimbursement Account (HRA)

Health Reimbursement Accounts (HRAs) are employer-funded group health plans from which employees are reimbursed tax-free for qualified medical expenses up to a fixed dollar amount per year.​ The employer funds and owns the arrangement.

How an HRA reimbursement works Employer funds the account, employee submits the expense, reimbursement is tax-free Step 1 Employer funds the HRA Step 2 Employee submits a qualified expense $ Step 3 Tax-free reimbursement Employer decides funding amount, eligible expenses, and rollover policy. Reimbursement is tax-free to the employee and tax-deductible to the employer. Source: IRS Notice 2002-45 and IRS Publication 969 on health reimbursement arrangements

What to keep in mind

​​What's the advantage to the employee?

​

  • Employer contributions are not part of wages, so they are tax-free

  • Unused money may rollover, employer decides how much

​

What's the advantage for employers?

​

  • Contributions are tax deductible

  • Can choose which qualified medical expenses money can be used for

  • Can choose if money rolls over at the  end of the year

Setting up an HRA involves plan-design choices that affect both your tax situation and what your employees can reimburse. We can walk through the trade-offs with you.

Health Reimbursement Account (HRA)

Have Financial Planning Questions?

T. Mann Financial logo

HOME

Our Services

Our Clients

Our Style

Schedule Now

ABOUT US

Meet our Founder

Our Mission

Community Involvement

Current Service Area

SERVICES

Financial Planning

Wealth Management

Insurance

Financial Education Classes

T. Mann Financial

 

By appointment, 8am - 8pm, 7 days a week


 (O) 541-583-0093  |  Springfield, OR  |  info@tmannfinancial.com

​

T. Mann Financial & Todd Mann offer Investment Advice through Todd Mann Financial Services Inc., a registered investment adviser located in Springfield Oregon.  Additional information about Todd Mann Financial Services Inc. is available on the SEC’s website at  www.adviserinfo.sec.gov. Insurance products and services are offered and sold through Todd Mann Financial Services, Inc. and individually licensed and appointed insurance agents.

 

Information presented is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. Past performance is not indicative of future performance.​

​

The reference to fee-only services are in regards to wealth management and financial planning only. Insurance services may result in commissions paid to T. Mann Financial. 

​

Although the firm does not charge a fee for the complimentary initial 30-minute consultation, the consultation is intended to result in establishing an advisory relationship.

​

Click here for full disclosure.

T. Mann Financial has implemented security measures designed to protect the personal information you share with us, including physical, electronic and procedural measures.

Springfield Chamber of Commerce
bottom of page