HSA vs FSA
By Jude Wallis
A health savings account can keep unused amounts from year to year and may be invested. A typical health flexible spending account is a plan-year pot: unused amounts are forfeited except for a limited carryover or grace period if the plan document allows one.
| HSA | Health FSA | |
|---|---|---|
| Who can open one | A person on a qualifying high-deductible health plan, within the statute's other tests. | An employee whose employer offers the plan. |
| Unused amounts | Remain in the account. | Generally forfeited at year end, unless a limited carry or grace applies. |
| Investing | Often available once a cash threshold is met. | Usually a spending account, not an investing account. |
| Portability | The account can follow the owner after a job change. | Tied to the employer plan. |
On this page
A rolling balance against a plan-year election
The useful distinction is what happens to money not spent on qualifying medical costs. An HSA can still be there next year. An FSA is built around one plan year.
How an HSA works is the HSA explainer. Tax-advantaged accounts places both wrappers beside 401(k)s and IRAs.
Eligibility is a gate, not a vibe
An HSA needs a qualifying high-deductible plan and the other statutory tests. An FSA needs an employer who offers it. Mixing the two names because both pay medical bills erases those gates.
Pre-tax dollars is the shared timing idea. This is educational material, not financial advice.
Common questions
Can I have both?
A general-purpose health FSA usually conflicts with HSA eligibility. Limited-purpose FSAs exist. The plan and the statute decide, not this table.
Does an FSA ever carry a balance?
Only if the employer adopted a carryover or grace period, and only up to that limit.
Is this financial advice?
No. Educational material.
Keep reading
This page is educational material, not financial advice. The figures come from the formula shown and assume the inputs you enter hold for the whole term. Your own rate, fees, taxes and timing will differ, so treat the output as arithmetic to check a decision against, not as a recommendation.