Oct 21 2024 13 mins 9
A new benefit for military families! How good is it?
In fall of 2024, SecDef announced a new Healthcare Flexible Spending Account (HCFSA) for military families. In March 2025, you'll be able to sign up for it for the first time. It may give you a minor tax savings but also may complicate your situation a little.
We break down the details of this pre-tax benefit, explaining how it works, who's eligible, and whether it's worth signing up for.
Main topics and questions covered:
- What is the new Healthcare Flexible Spending Account (HCFSA)?
- Who is eligible for the HCFSA?
- What can the HCFSA be used for?
- How much can be contributed to the HCFSA?
- How does the contribution process work?
- What are the tax benefits of the HCFSA?
- Are there any risks or downsides to the HCFSA?
- How does the "use it or lose it" rule apply?
- What are some potential use cases for the HCFSA?
- Is the HCFSA worth signing up for?
- How does the HCFSA compare to other military benefits?
- Where can listeners find more information about the HCFSA?
Links Mentioned:
- FSAfeds HCFSA official page
- Eligible Expenses List
- FSAfeds app
- HCFSA calculator- how much tax savings would it be for you?
- Military One Source's info on HCFSA
- FINRED's benefits page (official of Financial Readiness)
For a limited time, Spencer is offering one-on-one Military Money Mentor sessions! Get your personal military money and investing questions answered in a confidential coaching call.
Our new TSP course is live! Check out the Confident TSP Investing course at militarymoneymanual.com/tsp to learn all about the Thrift Savings Plan and strategies for growing your wealth while in the military. Use promo code "podcast24" for $50 off. Plus, for every course sold, we'll donate one course to an E-4 or below- for FREE!
If you have a question you would like us to answer on the podcast, please reach out on instagram.com/militarymoneymanual or email [email protected].
If you want to maximize your military paycheck, check out Spencer's 5 star rated book The Military Money Manual: A Practical Guide to Financial Freedom on Amazon or at shop.militarymoneymanual.com.
I also offer a 100% free course on military travel hacking and getting annual fee waived credit cards, like The Platinum Card® from American Express, the American Express® Gold Card, and the Chase Sapphire Reserve® Card in my Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.
Learn how to get your annual fees waived on premium credit cards from American Express in the Ultimate Military Credit Cards Course at militarymoneymanual.com/umc3.
The Platinum Card® from American Express and the American Express® Gold Card waive the annual fee for active duty military servicemembers, including Guard and Reserve on active orders over 30 days. The annual fees on all personal Amex cards are also waived for military spouses married to active duty troops.
