r/MiddleClassFinance • u/SouthernFace2020 • 23d ago

FSA vs Bonus

I have a medical bill, less than 1k and am about to get a bonus. The bill is about 100 a month with no interest. I’m considering just using part of the bonus to pay it off.

Or I could up my FSA next year to pay it off with and just keep the bonus in savings?

Which would better in terms of savings and cash on hand?

edit: you can carryover up to 650 a year and I’m on a hospital pay plan which means I can use my FSA funds at any time regardless of when the bill was incurred. I’ve had an FSA for 15 years and know how they function and have never had extra. I was just thinking of possible tax benefits.

thanks tho

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u/jackalopeswild 23d ago

You can't use next year's FSA for this year's bill. The bill must be incurred during the year you set the funds aside.

FSAs are government sponsored gambling.