Do I Have an HSA or FSA? A Comprehensive Guide to Understanding Health Savings Accounts

Many individuals often wonder whether they have a Health Savings Account (HSA) or a Flexible Spending Account (FSA). It's crucial to distinguish between the two, as they have different rules and benefits. Here's a breakdown to help you figure out which account you have:

Health Savings Account (HSA)

• Contributions are tax-deductible
• Unused funds rollover year-to-year
• Owned by the individual, portable
• Requires a high-deductible health plan

Flexible Spending Account (FSA)

• Use-it-or-lose-it rule with some grace period or carryover
• Employer-owned, not portable
• Doesn't require a high-deductible health plan

If you're unsure about which account you have, check with your employer or benefits provider. Understanding your account type can help you make the most of your healthcare benefits and savings opportunities.

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) both provide ways to save on medical expenses, but understanding their differences is vital for smart financial planning. Each offers unique advantages that cater to different needs and situations.