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.
While the freedom of an HSA cannot be overstated, it does need to be associated with a high-deductible health plan. That can be a plus for some but a snag for others. Since HDHPs require higher deductibles and out-of-pocket maximums, they tend to benefit younger and/or healthier people...
While you’ll want to maximize your contributions to your HSA in almost all cases, it’s generally wise to be more careful with the amount of money you contribute to your FSA. Any money you contribute to your FSA that has not been used by deadline for that plan year and that cannot b...
these plans aren’t exactly alike. Here, we’ll break down the differences between healthcare HSA vs. FSA so you can determine which one is the best fit for your needs.
The most notable difference between a flexible spending account and a health savings account is that an FSA is owned by the participant’s employer and an HSA is, in practice, controlled by you. This means that with an HSA, you have more flexibility to roll over contributions. For example...
Should you choose an HSA or an FSA? Both accounts have benefits that can make managing your out-of-pocket medical expenses easier throughout the year. In general, healthier and younger people with few prescriptions or medical conditions are likely to do better with an HSA and HDHP, since th...
also an HSA-eligible health plan • Must not be enrolled in Medicare • Cannot be claimed as a dependent on someone else's tax return If you meet the plan eligibility requirements, you can enroll in a health care FSA with your employer. If you're self-employed, you aren't eligible....
Alex Morrell
While the next opportunity to enroll in an FSA happens during the annual open enrollment period in the fall, employees eligible for an HSA can sign up anytime. “HSAs generally have more flexibility than FSAs. For instance, unused funds roll over each year, unlike with an FSA, where funds...
HSA, FSA, HRA: What’s the difference? Key takeaways: You can use HSAs, FSAs and HRAs for eligible medical expenses. An HSA is portable. That means you can take it with you if you leave your job. You can’t do the same with an FSA or an HRA. Funds in an HSA can grow tax-...