How Do HSAs Compare to Flexible Spending Accounts (FSAs)?
While both HSAs and Flexible Spending Accounts (FSAs) allow individuals to save for healthcare expenses, there are key differences: - HSAs are only available with HDHPs, while FSAs can be used with any type of health plan. - HSA funds roll over year to year, whereas FSAs typically have a "use-it-or-lose-it" rule. - Contributions to an HSA can earn interest or be invested, potentially growing over time. - FSAs have lower annual contribution limits compared to HSAs.
