What is an HSA or FSA? All You Need to Know About Health Savings Accounts and Flexible Spending Accounts

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are two popular options that can help you save money on healthcare expenses. Understanding the ins and outs of these accounts can benefit your financial wellness. Let's delve into what an HSA or FSA is and how they work.

HSAs and FSAs are both tax-advantaged accounts that allow you to set aside pre-tax money for qualified medical expenses. However, there are differences between the two:

• HSA (Health Savings Account): An HSA is available to individuals with a High Deductible Health Plan (HDHP). It offers a triple tax advantage - contributions are tax-deductible, grow tax-free, and withdrawals for qualified medical expenses are tax-free. Unused funds can carry over year after year.
• FSA (Flexible Spending Account): An FSA is typically offered by employers and allows employees to contribute pre-tax dollars to pay for eligible medical expenses. FSAs are
  

  Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) are essential tools that empower you to manage healthcare costs efficiently, making them invaluable for your financial health. By contributing pre-tax funds to these accounts, you’re not just saving money on essential medical care, but you’re also gaining tax benefits that can enhance your overall savings strategy. Discover how HSAs and FSAs can work for you!