Should I Do Both HSA and FSA? Find Out the Differences and Benefits

Are you confused about whether you should have both an HSA (Health Savings Account) and an FSA (Flexible Spending Account)? Let's break down the differences and benefits of each to help you make an informed decision.

An HSA and an FSA are both tax-advantaged accounts that can help you save money on eligible health expenses. However, there are some key differences between the two.

Differences Between HSA and FSA:

• Eligibility: HSA is available only to individuals with a high-deductible health plan, while FSA is available to anyone with a qualified health plan.
• Portability: HSA funds roll over year after year and are portable even if you change jobs, unlike FSA funds, which are
  

  Are you currently weighing the benefits of an HSA (Health Savings Account) against an FSA (Flexible Spending Account)? Let's explore each account's features and advantages to clarify your options.

  Both HSAs and FSAs are tax-advantaged accounts designed to alleviate the financial burden of eligible healthcare expenses, but they operate differently.

  Key Differences Between HSA and FSA:

  • Eligibility: To qualify for an HSA, you must have a high-deductible health plan, while an FSA can be utilized by anyone enrolled in a qualified health plan, making it more widely accessible.
  • Portability: One of the most significant distinctions is that HSA funds can be carried over indefinitely, allowing for long-term savings, while FSA funds typically must be used within the plan year, or you risk losing them.