Health Savings Accounts and FSAs
Chapters in this video
- 0:00 HSA eligibility and the HDHP barrier to entry
- 1:42 Triple tax advantage: the exam's only three-stage tax break
- 2:22 2026 contribution limits and HSA superpowers
- 3:12 The 20% non-qualified withdrawal trap before age 65
- 4:05 Age 65: penalty vanishes, no RMDs, IRA-like flexibility
- 4:35 FSA limits: employer-owned, cash-only, use-it-or-lose-it
- 5:46 HSA vs FSA head-to-head comparison
- 6:25 The LPFSA loophole for dual contributions
- 7:01 Rapid-fire exam recap
What this video covers
- Why the health savings account (HSA) is the only mainstream exam account with a triple tax advantage: tax-deductible contributions, tax-free growth, and tax-free qualified withdrawals
- The three barriers to HSA eligibility, with the high-deductible health plan (HDHP) as the primary gatekeeper
- 2026 contribution limits for individual ($4,400), family ($8,750), and the $1,000 catch-up at age 55
- How HSAs convert to a traditional individual retirement account (IRA)-like vehicle at age 65 with zero required minimum distributions (RMDs)
- Why flexible spending accounts (FSAs) are employer-owned, cash-only, generally use-it-or-lose-it, and capped at a $3,400 employee salary reduction limit for 2026
- The limited purpose flexible spending account (LPFSA) exception that lets an employee contribute to both an LPFSA (dental and vision only) and an HSA simultaneously
Read the full lesson, free
This video's complete written lesson is free to read in the CertFuel app, no signup wall. The complete Series 66 course also includes adaptive practice questions and spaced-repetition flashcards.