FSA

FSA vs HSA: What's the difference?

Let Health Products for You explain the difference between FSA & HSA accounts.

FSA vs HAS or HSA vs FSA? We get asked about that a lot and understandably it’s confusing, as FSA (Flexible Spending Account) and HSA (Health Savings Account) are closely related.

Both are tax-saving programs that cut your medical expenses on qualified medical expenses and items.

However, there are some significant differences between FSA vs HSA, and understanding the nuances of each account is crucial to maximizing your savings.

At HPFY, our team lists these FSA vs HSA differences in one clear chart for your convenience.

Chart. FSA vs HSA AT A GLANCE

Account Type	FSA	HSA
Annual Contribution Limit	$3050	$3850-$7750
Rollover	No	Yes
Self-employed eligible	No	Yes
Requires HDHP	No	Yes
Childcare eligible	Yes	No
Interest earned	No	Yes

 

FSA vs HSA: Understanding the differences

The HSA contribution range refers to $3850 for an individual and $7750 for a family account. An HSA account, unlike FSA, requires you to have a high deductible health plan (HDHP). The self-employed can have an FSA but not an HSA account which is employer-provided and earns an interest income. Conversely, childcare is one of the FSA eligible items but not an HSA-eligible one.

No FSA rollover means Use It or Lose It!

As we approach the end of the year, the question of HSA / FSA rollover looms large! Perhaps the most important difference is the end of year and any rollover. While HSA rolls over into the next year, FSA does not rollover. Your FSA dollars need to be spent by the end of the year – or you lose it. At HPFY, our FSA store has a range of great FSA eligible items for you to choose and buy from. Visit FSA Qualified Healthcare Categories so you won’t lose your valuable FSA dollars but also use it smartly!

Quick Answers to 5 Top FSA and HSA Questions

 

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