HSA vs. FSA
Compare Health Savings Accounts and Flexible Spending Accounts by eligibility, ownership, taxation, contributions, payment, eligible expenses and year-end treatment.
Visit Health Savings Account and Flexible Spending Accounts for more details about each account.
Your medical plan decides which account you can use
If you’re enrolled in the HDHP medical plan, you can contribute to an HSA. If you’re enrolled in a PPO medical plan, you can contribute to a Healthcare FSA. You cannot be enrolled in both a Healthcare FSA and an HSA.
Dependent Care FSA: All employees are eligible to contribute to a Dependent Care FSA, regardless of which medical plan they choose. Learn more about FSAs.
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Your Contacts
HSA and FSA administrator
877-713-7682
Resources
| FSA | HSA | |
|---|---|---|
| Eligibility | You can elect a Healthcare FSA even if you waive other coverage. You cannot make changes to your contribution during the plan year without a qualifying life event. You cannot be enrolled in both a Healthcare FSA and an HSA. | You must be enrolled in a qualified HDHP to contribute money to your HSA. You cannot be covered by a spouse’s non-high deductible plan or a spouse’s FSA, or be enrolled in Medicare or TRICARE. You can change your contribution at any time during the plan year. |
| Ownership | Your employer owns your FSA. If you leave your employer, you lose access to the account unless you have a COBRA right. | You own your HSA. It is a savings account in your name, and you always have access to the funds, even if you change jobs. |
| Taxation | FSA contributions are tax-free via payroll deduction. Funds are spent tax-free when used for qualified expenses. | HSA contributions are tax-free, the account grows tax-free, and funds are spent tax-free on qualified expenses. |
| Contributions | You can contribute up to the IRS annual maximum in 2027 to an FSA. | You and your employer together can contribute up to $4,500 in 2027 (up to $9,000 for families). Ages 55+ can make an annual $1,000 “catch-up” contribution. |
| Payment | Some plans include an FSA debit card to pay for eligible expenses. If not, you pay up front and submit receipts for reimbursement. | Many HSAs include a debit card to pay for qualified expenses directly. Alternatively, you can save funds for future expenses or retirement. |
| Eligible expenses | Physician services, hospital services, prescriptions, menstrual products, PPE, over-the-counter medications, dental care, and vision care. A full list is available at irs.gov. | Physician services, hospital services, prescriptions, menstrual products, PPE, over-the-counter medications, dental care, vision care, Medicare Part D plans, COBRA premiums, and long-term care premiums. A full list is available at irs.gov. |
| Year-end treatment | Any unclaimed funds at the end of the year are forfeited. | HSA funds continue to accumulate until they are used; funds do not need to be used within any certain timeframe. The account may be used for future qualified expenses — even in retirement years. |