captpackrat posted... Anything you put into an FSA is lost at the end of the year. Use it or lose it.
Now, it does have tax advantages IF you're actually going to need it. If you have a medical condition, a family or are thinking of starting a family, or are planning for a surgery or the like, then by all means, put in as much as you think it's going to cost. Never put in more than your maximum out of pocket.
HSA is where it's at. Anything you put in is yours forever, and it's all tax-free. Only disadvantage is that you start with nothing, but if you are starting your job late in the year, you can still put in the maximum amount by the end of the year ($3850 single, 7750 family). I started my job in August, and couldn't make any HSA contributions until September, but I still managed to put in almost the full nut by December 31st, and I saved SO MUCH on taxes. Nearly half of my contributions were either from the employer or tax savings.
I can't get an HSA unless I go with the high deductible package though when I can get a gold ppo instead