Know what expenses qualify for FSA or DCFSA reimbursement. Check WEX’s list for specifics.

Estimate your annual healthcare or dependent care expenses to determine your contributions. Avoid over-contributing to prevent forfeiting unused funds due to the “use-it-or-lose-it” policy.

Be aware of your plan’s deadlines for incurring expenses and submitting claims.

Retain receipts and documentation for all FSA- or DCFSA-eligible purchases to substantiate claims and avoid reimbursement issues.

Keep an eye on your FSA balance throughout the year to ensure efficient use of funds and avoid last-minute spending.

Be aware of events like employment or family status changes that might affect your FSA. Understand how these can impact your contribution limits and eligibility for certain expenses.

Contribute the maximum allowed amount to your HSA each year to take full advantage of its tax benefits. For 2027, the limit is $4,500 for individuals and $9,000 for families.

Once your HSA balance reaches a certain threshold, consider investing a portion of it in mutual funds or other investment options offered by your HSA provider. This can help your funds grow over time.

Keep thorough records of all medical expenses paid from your HSA, including receipts and explanations of benefits (EOB) statements. This ensures you can easily reimburse yourself for qualified expenses and avoid penalties.

Compare prices for medical services and prescriptions to get the best value for your HSA dollars.

Invest in preventive care to avoid costly medical bills down the road. Many preventive services are covered by HDHPs without requiring you to meet your deductible.

Treat your HSA as a long-term savings vehicle for healthcare expenses. Consider how you can strategically use it in retirement, as funds can be withdrawn penalty-free for non-medical expenses after age 65 (though income tax will apply).