Understanding FSA and HSA Funds

Flexible Spending Account (FSA) and Health Savings Account (HSA) are both accounts that help you save money for healthcare expenses. FSA is offered by your employer and allows you to set aside a portion of your pre-tax salary to use for qualified medical expenses. HSA, on the other hand, is a tax-advantaged account that you can contribute to if you have a high-deductible health plan.

Here are some key points to help you understand FSA and HSA funds:

• FSA funds are use-it-or-lose-it, meaning you have to spend the money within the plan year or forfeit it.
• HSA funds roll over from year to year, allowing you to save and invest for future healthcare expenses.
• FSA funds are not portable, meaning you can't take them with you if you leave your job.
• HSA funds are portable, so you can keep them even if you change jobs or retire.

Flexible Spending Account (FSA) and Health Savings Account (HSA) are essential tools for managing your healthcare expenses. While both allow you to set aside pre-tax money, the key difference lies in their structure and benefits. For those with a high-deductible health plan, HSAs not only provide a way to save for immediate costs but also offer long-term savings benefits, allowing funds to roll over each year.