Understanding the Difference Between HSA and Medical FSA

Health Savings Account (HSA) and Flexible Spending Account (FSA) are both popular tools to save money on medical expenses, but they have key differences that you need to know.

HSAs and FSAs both offer tax advantages that can help you save money on healthcare costs. However, there are distinct differences between the two:

• Funding: HSAs can be funded by you, your employer, or both, while FSAs are typically funded only by you.
• Roll-Over: HSA funds roll over from year to year, allowing you to accumulate savings over time. FSA funds, on the other hand, are often subject to a
  

  Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are essential tools for managing healthcare costs, but understanding their differences is crucial for effective financial planning.