HSA vs FSA
Both accounts let you: Use pre-tax money to pay for qualified medical
expenses, including dental and vision 1 Make pre-tax payroll contributions Pay for your spouse and dependents too
Save up to $500 3 on taxes Healthcare Flexible Spending Account
Save up to $1,660 2 on taxes Health Savings Account
Fund availability
Funds available as you contribute
Get full annual amount on day 1 of plan year
Funds eventually expire if you don’t use them (though some employers offer grace period or carryover extensions)
No use-it-or-lose-it, keep your money forever (even if you change health plans, jobs, or retire)
Fund expiration
Investing
Invest 4 your HSA tax-free, like a 401(k)
Cannot invest FSA funds or grow your account
Contribution changes
Change or update anytime
Only during enrollment or ‘qualifying life event’
Health plan type
Requires HSA-qualified health plan
Works with any health plan type
$8,300 (Family plan) $4,150 (Individual plan)
Contribution limits 5
$3,200 (regardless of plan type)
• Dependent Care FSA • Commuter Benefits • Health Reimbursement Arrangement
• Dependent Care FSA • Commuter Benefits • Limited Purpose FSA
Account compatibility (if offered by employer)
HealthEquity.com/Learn Discover more ways to save.
1 FSAs and HSAs are never taxed at a federal income tax level when used appropriately for qualified medical expenses. Also, most states recognize FSA and HSA funds as tax deductible with very few exceptions. Please consult a tax advisor regarding your state’s specific rules. | 2 Estimated potential tax savings are based on a $8,300 family HSA contribution and 20% effective tax rate including applicable state and federal income taxes. Actual tax savings will vary based on your contribution amount and specific tax situation. | 3 Estimated potential tax savings are based on a $2,500 contribution and a 20% effective tax rate, including applicable state and federal income taxes. Actual tax savings will vary based on your specific tax situation. | 4 Investments made available to HSA members are subject to risk, including the possible loss of the principal invested, and are not FDIC or NCUA insured, or guaranteed by HealthEquity, Inc. | 5 Contribution limits are accurate as of 11/09/2023 for FSA and 5/22/2023 for HSA. For the latest information, please visit: HealthEquity.com/Learn | HealthEquity does not provide legal, tax or financial advice. Always consult a professional when making life-changing decisions. | Copyright © 2023 HealthEquity, Inc. All rights reserved. HSAvsFSA-One-pager-November-2023.indd
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