FSAs and HSAs

Last Updated on April 10, 2024

FSAs and HSAs are both tax-advantaged accounts that allow employees to contribute pre-tax dollars to an account earmarked for qualifying medical expenses. 

FSAs have lower contribution limits and generally you can’t carry over funds, while HSAs are controlled by an individual and are more flexible, with withdrawals allowed with a penalty and contributions can be rolled over to the next year. 

To qualify for an HSA, you must have a high deductible health plan. Both FSAs and HSAs are funded with pre-tax payroll contributions and can help lower your taxable income