FSA vs. HSA: Which is Right for You?
You’ve probably heard of an FSA, or flexible spending arrangement, and an HSA, or health savings account. Both allow you to set aside pretax dollars for future health care expenses, but each has different rules.
Here’s a basic overview of FSAs and HSAs that may help you decide whether to enroll for 2024 or make changes to your current enrollment.
FAQ's about FSA and HSA
Am I eligible to contribute?
FSA: Only if your employer offers this benefit.
HSA: Only if you have a high deductible health plan (HDHP). Your employer may offer one or both. You can get them on your own, too.
What do they cover?
Both: Qualified medical expenses for you, your spouse and your dependents.
What happens if I leave my job?
FSA: You can’t take it with you. You may have a limited time to spend your balance.
HSA: It always belongs to you.
What’s the annual contribution limit?
FSA: The limit for 2024 will be announced later this fall by the IRS. The limit does not increase if your spouse or dependents get health coverage through your employer.
HSA: $4,150 for 2024 if your health plan only covers you, and $8,300 if it covers your spouse or dependents. Add $1,000 per eligible adult who is 55 or older.
What happens to my balance at the end of the year?
FSA: You must use it or lose it by Dec. 31. Some employers offer a grace period or limited rollover to the following year.
HSA: Nothing. There’s no deadline for using your balance.
Get in touch if you have questions about FSA's, HSA's or your health insurance coverage.