No. While both accounts can be used for qualified medical expenses, there are significant differences. A Flexible Spending Account (FSA) is fundamentally different than a Health Savings Account (HSA). An FSA is “use it or lose it”, meaning you have a limited amount you can contribute each year, but if you don’t use the money in it, you will lose the ability to use it later (subject to limited carry forwards and a grace period). With an FSA, the account is also not yours, it is your employer’s. Additionally, you have to make an election at the beginning of each Plan Year to determine how much money you want to put away. An FSA, however can be used with almost any type of health insurance (low or high deductible). An HSA on the other hand has significant advantages. It is your account and it is portable. Meaning if you decide to leave your employer, you can take all of the money in your account with you. You can also rollover your balances year-to-year, so there is no concept of “use it or lose it”. The contribution limits are also higher with an HSA vs. an FSA. The HSA can only be used with a qualifying Health Deductible Health Plan.
Articles in this section
- What is an HSA?
- How Does an HSA Work?
- What are the benefits of an HSA?
- What are the requirements of an HSA? Am I eligible?
- What designates a qualifying High Deductible Health Plan?
- Do I have to get an HSA if I am on a High Deductible Health Plan?
- How does money get into my HSA account?
- How can I get an HSA?
- If I have a family, can I still have an HSA?
- Can I have a joint-HSA with my spouse?