Is Flex Money a HSA? - Understanding the Difference

Many people often confuse flexible spending accounts (FSAs) with health savings accounts (HSAs) due to their similar acronyms and functions. However, it's important to note that flex money is not the same as an HSA, and they serve different purposes in managing healthcare expenses.

Here's a breakdown of the differences between flex money and HSAs:

• FSAs are set up by employers, allowing employees to contribute pre-tax money for qualified medical expenses.
• HSAs, on the other hand, are individual accounts that anyone with a high-deductible health plan can contribute to for healthcare expenses.
• Flex money is a
  

  FSAs are convenient but are limited to the plan year, meaning any unspent funds typically expire at year-end, whereas HSAs allow you to roll over your contributions indefinitely.