Should I Have HSA and FSA? - White Coat Investor

Are you uncertain about whether you should have an HSA and FSA? Let's unravel the mystery and shed light on these healthcare savings accounts. Health Savings Account (HSA) and Flexible Spending Account (FSA) are two popular options for managing healthcare expenses. They have similarities and differences that can impact your financial health.

While both HSA and FSA allow you to save money for medical expenses on a pre-tax basis, there are key distinctions between the two that you should consider:

• Eligibility requirements
• Portability of funds
• Contribution limits
• Investment options
• Roll-over rules

An HSA can be a powerful tool for building wealth over time due to its triple tax advantages - contributions are tax-deductible, earnings grow tax-free, and withdrawals for qualified medical expenses are tax-free. On the other hand, an FSA is a

Are you pondering whether to juggle an HSA and FSA in your financial toolkit? Let’s unravel the ropes and shed some light on these popular healthcare savings accounts. Both Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) stand as pillars for managing medical expenses, but they feature distinct qualities that can impact your financial well-being.