Deciding the right plan for you, your marriage, and/or your family can be tough. A flexible spending account (FSA) option allows someone to set aside money to pay for out-of-pocket medical expenses—and this money is not taxed, allowing for savings equaling the amount that would normally be taxed.
Also gaining popularity in recent years is the health savings account (HSA) option—which can be a great way to not only pay for medical expenses, but also help save for retirement. HSA’s allow for individuals or married couples to set aside money on a pre-tax basis to pay for future qualified medical expenses.
Below is an outline of the differences, qualifications, contribution limits, etc. of FSA’s vs. HSA’s. We’re here to help discuss your options if you have questions.