Understanding the Difference Between an HSA and FSA Account

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are both popular options for managing healthcare expenses, but they have some key differences that are important to understand.

HSAs and FSAs are both tax-advantaged accounts that can help you save money on eligible medical expenses. Here is a breakdown of the main differences between the two:

• Eligibility: HSAs are only available to individuals who have a high-deductible health plan (HDHP), while FSAs are typically offered by employers to all employees.
• Ownership: With an HSA, the account is owned by the individual and is portable, meaning you can take it with you if you change jobs. FSAs are usually owned by the employer.
• Contribution Limits: HSAs generally have higher contribution limits than FSAs, allowing individuals to save more money tax-free for medical expenses.
• Carryover: FSAs have a
  

  Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are both designed to assist individuals in managing their healthcare expenses effectively. Understanding the nuances between these two accounts can provide you with valuable insights into how to best utilize them for your financial health.