Is Wageworks a FSA or an HSA?

Wageworks is a flexible spending account (FSA) provider that offers different types of benefits to employees. When it comes to Health Savings Accounts (HSAs) or FSAs, it's crucial to understand the differences between the two.

An FSA is an employer-sponsored benefit that allows employees to set aside pre-tax dollars for qualified medical expenses. On the other hand, an HSA is a savings account that individuals can contribute to with pre-tax funds and is typically paired with a high-deductible health plan.

Although Wageworks provides FSA services, it does not offer HSA accounts. HSAs are typically offered through banks, credit unions, insurance companies, and other approved financial institutions.

Wageworks is primarily known for providing flexible spending accounts (FSAs), which allow employees to allocate pre-tax income toward eligible medical expenses. Unlike HSAs, which can be contributed to personally and grow tax-free, FSAs are funded by your employer's contributions and are limited by the amount you choose to set aside. It's important to grasp these distinctions to make informed decisions about your health spending.