You could be passing up ‘free money’ when contributing to your FSA and HSA. Make the most of open enrollment

Core Insights - Open enrollment season presents a significant opportunity for Americans to utilize tax-free savings through Flexible Spending Accounts (FSAs) and Health Savings Accounts (HSAs), yet many workers fail to take full advantage due to misunderstandings [1][2][3] Group 1: Importance of Open Enrollment - Open enrollment is a critical annual period for workers to update health insurance, adjust retirement contributions, and elect optional benefits like FSAs and HSAs, with limited opportunities to make changes until the next enrollment period [3] - This period is often overlooked, despite its potential financial benefits [3] Group 2: Understanding FSAs and HSAs - FSAs allow workers to set aside pre-tax dollars for medical expenses, but they typically operate on a "use it or lose it" basis, meaning unspent funds may be forfeited at the end of the year unless specific employer provisions are in place [4] - HSAs are available only to those enrolled in qualifying high-deductible health plans, offering pre-tax contributions that do not expire, can be invested, and provide tax-free withdrawals for eligible health expenses, thus presenting a "triple tax advantage" [5] Group 3: Awareness and Usage Trends - FSAs and HSAs are among the least understood workplace benefits, with only one in five Gen Z workers utilizing these accounts and understanding their role in employer health insurance plans, indicating a broader trend of insufficient research into these financial tools [6]