A flexible spending account (FSA) is a type of account that allows employees to set aside pre-tax funds to pay for qualified medical expenses, while a health savings account (HSA) is a type of account that allows individuals with high deductible health plans to save pre-tax funds for qualified medical expenses.
One key difference between the two is that funds contributed to an FSA must be used by the end of the plan year or else they are forfeited, whereas funds in an HSA roll over from year to year and can be carried forward indefinitely. This means that FSAs do not offer the same long-term savings potential as HSAs.
which is true of a flexible spending account but not a health savings account?
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