FSA, HSA, HRA…that’s a lot of letters, but what do they really stand for? Each of these options are great ways to save money. They have many differences, but one important thing in common. Each lets you set aside your hard-earned income on a pre-tax basis. Every little bit you set aside in these accounts—like in your 401(k)—means that the income taxes you pay are based on a lower number. Just by utilizing your accounts and lowering your tax base, you’re giving yourself a raise!
Before you skip over these important accounts in your benefits decision-making process, be sure to learn about the short- and long-term benefits each offers you:
- Reduce your income taxes.
- Keep more money in your pocket.
- Save for your healthcare needs.