HSA or FSA

Health savings accounts (HSA) and flexible spending accounts (FSA) both help people save for future medical expenses. These accounts also offer distinct tax benefits. Often mixed up for each other. These two accounts are mutually exclusive. You only can use one or the other.

	​FSA	HSA
CONTRIBUTION	For 2022, you can contribute up to $2,850 to a health care FSA.	For 2022, you can contribute up to $3,650 for a self-only plan, up to $7,300 for family coverage.
UNUSED FUNDS TO ROLLOVER	Between $570 - $610, depending on emplyer	Unlimited
CAN YOU INVEST IN FUNDS	No investment capability	Investment capability
OWNERSHIP	With employer	With individual/ employee
​WITHDRAWAL	Not allowed	Allowed but with 10% penalty
TAX BENEFITS	Contributions made to an FSA are tax-free—not subject to payroll or income taxes. Distributions made for qualified medical expenses are not subject to taxes.	Contributions made to an HSA are tax-free or tax-deductible. Distributions made for qualified medical expenses aren’t subject to taxes. But a 20% tax is assessed if your HSA distribution isn’t used for qualified medical expenses.