Health savings accounts and flexible spending arrangements can both pay eligible medical expenses with tax advantages. They are not interchangeable.
An HSA belongs to the individual
Eligible HSA balances can remain across years and jobs, while eligibility depends on qualifying health coverage.
An FSA follows employer plan rules
Carryover or grace-period features vary, and unused amounts may be forfeited.
Estimate known care
Prescriptions, appointments, dental work, and vision costs can guide an election without treating the account as free money.
Sources
- Internal Revenue Service, Publication 969.
- HealthCare.gov, HSA and FSA Overview.