HSAs and FSAs, explained

Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) let you pay for eligible medical costs with pre-tax money. They work quite differently.

HSA

• Only with an HSA-eligible high-deductible health plan
• The money is yours and rolls over every year, even if you change jobs
• Can often be invested
• Withdrawals for qualified medical costs are tax-free

FSA

• Offered through an employer
• Generally "use it or lose it" by the end of the plan year, though some plans allow a small carryover or a grace period
• The full yearly amount may be available early in the year

Check the limits

Contribution limits change each year; see IRS.gov or your benefits guide.

General information, not tax advice. Dime and Dollar isn't paid by any insurer, provider, pharmacy or discount program.