Understanding the Difference Between HSA and Flex Spending

Health Savings Account (HSA) and Flexible Spending Account (FSA) are both popular options for managing healthcare costs, but they have key differences that are important to understand.

HSAs and FSAs are both tax-advantaged accounts that allow you to save money for medical expenses, but they have different rules and features:

• Funding: HSAs are funded by the individual, their employer, or both, with contributions made on a pre-tax basis. FSAs are typically funded solely by the individual through pre-tax payroll deductions.
• Ownership: HSA funds belong to the account holder and are portable, meaning they can be carried over from year to year and even transferred between jobs. FSA funds are often
  

  When it comes to planning for healthcare expenses, understanding the differences between a Health Savings Account (HSA) and a Flexible Spending Account (FSA) can set you on the right path to financial wellness.