What is an HSA and FSA Card? Understanding the Basics for Your Health and Savings

Health Savings Account (HSA) and Flexible Spending Account (FSA) cards are financial tools that can help you save money on eligible medical expenses. These accounts are popular options for individuals and families looking to set aside funds for healthcare costs while also enjoying tax benefits. Let's explore the basics of HSA and FSA cards to help you make informed decisions about your healthcare expenses.

Health Savings Account (HSA) Card:

An HSA is a tax-advantaged savings account available to individuals who are enrolled in a high-deductible health plan (HDHP). Here are some key points about HSA cards:

• Contributions made to an HSA are tax-deductible
• Funds in an HSA can be used to pay for qualified medical expenses
• Unused funds roll over from year to year
• HSA funds can be invested for potential growth

Flexible Spending Account (FSA) Card:

An FSA is another type of tax-advantaged account that can be used to pay for eligible medical expenses. Here's what you need to know about FSA cards:

• Contributions to an FSA are made pre-tax through payroll deductions
• Funds in an FSA must be used within the plan year or grace period
• FSA funds can be used for qualified medical expenses, including co-pays, deductibles, and certain over-the-counter items

Both HSA and FSA cards offer convenient ways to cover healthcare costs, but it's important to understand the differences between the two accounts.

Health Savings Accounts (HSAs) are not just about saving money; they're about taking charge of your health expenses wisely. With an HSA card, you can make tax-free withdrawals for qualified medical expenses, which is a game-changer for anyone managing healthcare costs.