HSA with limited purpose FSA worth it?
My current health plan is ending and I have to select a new plan through my employer. I’m going to be signing up for the HSA plan. The HSA plan has a $6000 family deductible, with $1500 employer contribution. My family doesn’t use very much medical care. For the whole year so far we’ve totaled just over $2000. So the employer contribution nearly covers my yearly expenses. I don’t need to contribute much to the HSA. I was thinking about $100 a month.
Before deciding on the HSA plan, I did plan on paying off my son’s braces. We owe about $3000 on them still. So I was going to max out my FSA and pay off the braces with the FSA money. My company also offers a limited purpose FSA for vision and dental that can be paired with the HSA.
So basically, I was going to max out the FSA and only put like $1200 in the HSA. But then I was reading that HSA accounts cover braces? If that is true, I’d be better off putting that FSA money into the HSA instead, because then it can be used for either. Then what is the purpose of the limited purpose FSA? I can only see that being useful if you make enough to max out both.