Midyear check-in: Make the most of your FSA or HSA

As we pass the halfway mark of 2025, it's the perfect time to check in on your flexible spending account (FSA) or health savings account (HSA). Whether you're planning for upcoming health care expenses or looking to maximize your tax-advantaged savings, a midyear review can help you stay on track and avoid leaving money on the table.

Visit WEX to check your account balances and read on for best practices to make the most of your pretax dollars.

FSA: Use it or lose it

You can use the health care FSA for qualified health care expenses, such as co-pays and coinsurance, contact lenses, prescriptions, and over-the-counter medications. Here are a few tips to use your FSA effectively.

1. Know your health care FSA's carryover limits and substantiation deadlines. Up to $660 (minimum of $30) of your unspent 2025 account balance will automatically roll over to your 2026 account. If you're not using up all your FSA funds, be aware of this margin and aim for somewhere within it.

2. Spend smart this summer. Stock up on FSA-eligible items such as sunscreen, cold packs, and prescription sunglasses. Visit the online FSA store to shop for guaranteed-eligible items.

3. Book medical appointments now. Since your FSA funds can be used for co-pays and procedures, schedule back-to-school physicals or any delayed surgery to take place before the year ends.

4. Set a year-end reminder. Add a calendar alert for Dec. 1 (or earlier) to review your balance and complete your expenditures before the Dec. 31 spending deadline.

5. Use the WEX mobile app to track balances, file claims, and manage your accounts on the go. The app simplifies substantiation because you can use it to photograph and upload your receipts.

HSA: Are you contributing enough?

The HSA is a triple tax–advantaged account to help fund your out-of-pocket health care costs if you're enrolled in the university's high-deductible health plan. Look at the long term and set your goals according to these suggestions.

1. Review your health care needs. Look at your spending history and upcoming appointments to estimate what you'll need for the rest of the year. Review your routine expenses such as prescriptions and annual checkups as well as unexpected costs such as emergency room visits and urgent care. If your HSA balance falls short, consider increasing your contributions.

2. Max out your contributions. For 2026, the IRS contribution limits for an HSA are $4,300 for an individual and $8,550 for a family. If you're 55 or older, you can contribute an extra $1,000 as a catch-up. You can adjust your contribution amount anytime during the year through the benefits enrollment portal. Contributing the maximum can be a smart retirement move because HSA funds grow tax-free and can be used for future medical expenses. Use My HSA Planner to set personalized goals and project your retirement savings.

3. Consider investing your HSA funds. If you've built up a cushion—enough to cover around two to three years of routine expenses—consider investing the rest. Common HSA investment options are mutual funds, stocks, and bonds. Only about 8% of HSA holders are currently investing. Don't miss out on potential growth.

4. Monitor your investments. If you've invested your HSA dollars, check performance regularly. Check out WEX's HSA blog for guidance and tools to adjust your strategy as your needs evolve.

Final tip: Stay ahead of the game

A quick midyear check-in can help you avoid surprises, maximize your savings, and make the most of your FSA and HSA. Whether you want to spend wisely now or save for the future, a little planning goes a long way.

Questions? Reach out to benefits@jhu.edu or call 410-516-2000.