HSA vs FSA Decision Tool
HSA vs FSA: which is right for you? Compare based on your expected medical spending, tax bracket, and risk tolerance.
FAQ
What is an HSA?
Health Savings Account. Pre-tax contributions, tax-free growth, tax-free withdrawals for qualified medical expenses. Triple tax advantage. Requires you to be enrolled in a High Deductible Health Plan (HDHP).
What is an FSA?
Flexible Spending Account. Pre-tax contributions, tax-free withdrawals for medical expenses. Use-it-or-lose-it (small rollover allowed). Doesn't require HDHP.
Can I have both?
Limited. You can have an HSA and a Limited Purpose FSA (dental/vision only) or a Dependent Care FSA. You can't have an HSA + general purpose Health FSA.
Does an HSA work for retirement?
Yes — many advisors call it the best retirement account. After 65 you can withdraw for any reason (taxed as income, like a 401k). Keep receipts to reimburse old medical expenses tax-free at any age.
Disclaimer. Tax rules and limits change yearly. Verify with your benefits administrator and IRS Publication 969 for HSA-qualified expenses. HSA portability rules and HDHP requirements are specific.