During open enrollment, many Americans overlook tax-free savings opportunities through FSAs and HSAs, missing out on free money. These accounts are designed to lower out-of-pocket costs, yet many workers don’t fully understand them. FSAs are use-it-or-lose-it, while HSAs offer a triple tax advantage and never expire.

Confusion over FSAs and HSAs leads to costly missteps, with up to 81% of workers leaving free money on the table. Understanding likely medical expenses helps decide between the two accounts. Predictable costs may benefit from FSAs, while those expecting occasional expenses can maximize tax savings with HSAs.

Employer contributions to HSAs offer guaranteed returns, making maxing out contributions a tax-efficient move. Unused HSA funds can roll over indefinitely and be invested, turning the account into a long-term wealth-building vehicle. These accounts are among the least understood workplace benefits, with only one in five Gen Z-ers utilizing them.

Read more at Yahoo Finance: You could be passing up ‘free money’ when contributing to your FSA and HSA. Make the most of open enrollment