HSA vs. FSA: What's the Difference?

• You generally won’t have to pay taxes on the money set aside in these accounts — which could cut your healthcare costs overall.
• You can use these funds to pay for a wide range of medical and dental expenses (though not all expenses, so make sure you find out what qualifies).
• You’ll typically get a debit card that links right to your account and makes it easy to pay for qualified expenses.

Flexible Spending Accounts (FSAs)

• An FSA can only be set up by your employer so talk to your HR department to learn if they’re available.
• The annual limit on these accounts is currently $2,650.
• They have a “use it or lose it” requirement — you have to spend whatever you put into the account the year you put it in (though your employer may allow a grace period or a carryover).
• If you leave your job, you usually can’t take your FSA with you.

Health Savings Accounts (HSAs)

• You can only qualify for an HSA if you have a high deductible health plan and this is the only health insurance you have — again, your employer’s HR department is a good place to learn more.
• You can currently set aside $3,450 for yourself ($4,450 if you’re 55 or older) and $6,900 for a family each year — and the money in the account rolls over from year to year (so you don’t have to worry about putting just the right amount aside).
• Just like a personal savings account, you’ll earn interest on your balance.
• As long as you have a high deductible health plan, you can have an HSA. So, your HSA can move with you if you switch jobs, and if your employer doesn’t offer one, or you’re self-employed, you can set up a with Summit.