Is a FSA and HSA the Same? Understanding the Differences

Many people often confuse Flexible Spending Accounts (FSA) with Health Savings Accounts (HSA), but they are not the same. While both accounts offer tax advantages for healthcare expenses, there are key differences between the two.

FSAs and HSAs have their unique features and eligibility requirements that distinguish them from each other:

• FSAs are sponsored by an employer, while HSAs can be set up by individuals.
• FSAs require you to use the funds within the plan year or lose them, while HSA funds roll over year after year.
• FSAs have a
  

  Understanding the differences between a Flexible Spending Account (FSA) and a Health Savings Account (HSA) is crucial for making informed financial decisions regarding your healthcare. While both accounts offer valuable tax advantages, they serve different purposes and have unique features that can significantly impact your financial planning.