HSA or FSA? The 2027 Numbers Just Changed the Math

Open enrollment decisions often get stuck on numbers that aren't even final yet. This episode breaks down the difference between the IRS-confirmed 2027 HSA limits and the still-unconfirmed FSA projection everyone keeps quoting, then hands listeners a simple, spreadsheet-free way to choose between an HDHP-plus-HSA setup or a PPO-plus-FSA plan. Derek Wu walks through why the 2027 HSA limits — $4,500 individual and $9,000 family, along with the updated HDHP deductible and out-of-pocket thresholds — are locked under official IRS guidance, while the widely cited $3,500 FSA figure is only a projection from outside reporting, not confirmed law. Rather than comparing the two limits directly, the episode offers a usage-based filter: how often you actually use healthcare should drive your choice, not which number looks bigger. 2027 HSA limits are finalized under IRS Revenue Procedure 2026-24, including new HDHP deductible and out-of-pocket thresholds. The $3,500 FSA figure in circulation is an unofficial projection, not a confirmed IRS number, which creates payroll deduction risk if you elect against it. EBRI research shows most HSA holders spend funds on near-term expenses rather than investing them. A simple filter: frequent, predictable costs point toward FSA; rare, deductible-tolerant use points toward HSA. Marketplace-plan listeners should check new ACA Bronze and Catastrophic plan eligibility starting January 1, 2026. Listeners walk away with a clear, practical way to sort themselves into an FSA or HSA lane and finalize enrollment with confidence, no spreadsheet required. Made a decision? That's a win. Subscribe so you're ready for the next one. Got a money choice you're stuck on? Drop it in the reviews, it might just get picked for next week's episode.