Group 1: Flexible Spending Accounts (FSA) - FSAs allow employees to save pre-tax dollars for qualified healthcare and dependent care expenses, reducing taxable income [2][5] - Unused FSA funds typically must be used within one year, with no rollover option [5] - Employers can set lower contribution limits for their own FSA plans, and married couples can combine contributions to meet household limits [1] Group 2: Health Savings Accounts (HSA) - HSAs can be paired with high-deductible health insurance plans, allowing pre-tax contributions that lower tax liability [4] - HSAs offer tax-free growth and withdrawals for qualified medical expenses, with annual contribution limits set by the IRS [3] - Unused HSA funds can roll over to the next year, providing a long-term savings option [3] Group 3: Retirement Accounts - Traditional 401(k) plans allow pre-tax contributions, lowering taxable income, with annual contribution limits adjusted for inflation [6] - Employers may offer matching contributions to 401(k) plans, incentivizing employee participation [7][8] - Aiming to contribute at least 15% of salary to retirement plans is recommended, considering employer matches [9] Group 4: Employee Stock Purchase Plans (ESPP) - ESPPs allow employees to purchase company stock at a discount, often requiring a minimum employment period [11] - Diversification of holdings is advised to mitigate risks associated with stock ownership [12] Group 5: Tax Credits and Workplace Perks - Tax credits can significantly reduce tax liability and are often more beneficial than deductions [14] - Employers may offer various perks, such as educational benefits, commuter benefits, and health and wellness incentives, which can lower living costs [15]

Core Insights - Health Savings Accounts (HSAs) provide a triple-tax advantage, making medical care more affordable [1][5] - Contribution limits for HSAs are set to increase in 2025 and 2026, with specific amounts for self-only and family coverage [16][17] - Eligibility requirements for contributing to an HSA include being enrolled in a high-deductible health plan (HDHP) and not having a general purpose flexible spending account (FSA) [6][18] HSA Contribution Limits - In 2025, the maximum HSA contribution is $4,300 for self-only coverage and $8,550 for families, with an additional $1,000 catch-up contribution for those aged 55 and older [16] - In 2026, the maximum HSA contribution increases to $4,400 for self-only coverage and $8,750 for families, with the same catch-up contribution allowance [17] HSA Eligibility Requirements - To contribute to an HSA, individuals must be enrolled in an HSA-eligible plan, not have a general purpose FSA, not be enrolled in Medicare, and not be claimed as a dependent [6][18] High-Deductible Health Plans (HDHP) - HDHPs must meet specific deductible and maximum out-of-pocket limit thresholds to be compatible with HSAs [7][9] - Preventive care services are typically covered at no charge before the deductible is met, but other services require out-of-pocket payments until the deductible is reached [8][11] HSA Benefits - HSAs allow for pretax contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses [5] - Unused HSA funds roll over year to year, providing flexibility for future medical expenses [12] Contribution Deadlines - The deadline for HSA contributions for the tax year is April 15 of the following year, allowing individuals to contribute for the previous year until that date [15]