What’s the difference between an HSA and FSA? A health savings account(HSA)and a flexible spending account(FSA)have a lot in common, but they aren’t without their differences. Among other distinctions, an HSA requires the account holder to have a high-deductible health plan, while health ...
The Difference Between an HSA and an FSA: Both accounts are designed to help manage healthcare expenses, but they have distinct characteristics that are important to understand.
HSAs and FSAs offer advantages that can make them valuable accounts for reducing your taxable income. The IRS will deduct any money you contribute to your HSA or FSA account from your taxable income for the year, leading to significant tax savings over time if you maximize your contributions e...
A Flexible Spending Account (FSA)is a health care savings account that also lets you set aside money for out-of-pocket expenses, just like the HSA does. Qualified expenses also include copays, coinsurance, and other costs depending on your plan. These accounts are typically part of an employ...
Important differences between HSAs and FSAs You probably can’t have both an HSA and an FSA If you qualify for an HSA, you can't elect to set up both an HSA and an FSA, unless the FSA is a “limited-purpose” FSA. Your employer’s HR representative will be able to tell you if ...
The most notable difference between an FSA (flexible spending account) and an HSA (health savings account) is that an FSA is owned by the participant's employer and an HSA is, in practice, controlled by you.
Health savings accounts (HSAs), flexible spending accounts (FSAs) and health reimbursement accounts (HRAs) are the best ways to save money for qualified medical expenses. Learn the differences between them so you can decide which is right for you.
Fidelity says that while both HSAs and FSAs help you save for qualified medical expenses, it is important to understand the differences between them. “HSAs may offer higher contribution limits and allow you to carry funds forward, but you’re only eligible if you’re enrolled in an HSA-eli...
Alex Morrell
There are several key differences to consider when deciding between an HSA and FSA: Rollover. HSA funds roll over year to year, FSA funds are forfeited if not used by end of plan year. Eligibility. HSAs require a high deductible health plan, whereas FSAs can be used with many plan types...