Is Health Care FSA an HSA? Exploring the Differences and Benefits

Health Care FSA and HSA are both popular options for saving on medical expenses, but they are not the same. While both accounts offer tax advantages, there are key differences between them.

A Health Savings Account (HSA) and a Flexible Spending Account (FSA) both provide tax advantages for medical expenses, but they have different features and eligibility requirements. Here's a breakdown of the main differences between an HSA and an FSA:

• Contributions: HSA contributions can be made by both the account holder and their employer, whereas FSA contributions are typically made by the account holder only.
• Roll Over: HSA funds roll over from year to year, but FSA funds are typically
  

  Did you know that while both Health Care FSAs and HSAs are excellent tools for saving on medical expenses, their structures differ greatly? An HSA not only allows contributions from both you and your employer, but it also offers the flexibility of accumulating savings over time, making it an ideal choice for long-term planning.