Wondering how an HSA is different from a Health Care Flexible Spending account (FSA)? Here’s how:
| Health Savings Account | Flexible Spending Account | |
|---|---|---|
| When to Use | You can use the HSA to pay for eligible medical, dental, and vision expenses under the Bronze, Bronze Plus, or Silver . | You can use the Health Care FSA to pay for eligible medical, dental, and vision expenses under any coverage level, though you are limited in how you use the account for medical expenses when you have a Bronze, Bronze Plus, or Silver coverage level. See "Which Account Should I Use" below for more information. |
| Contributions | You can contribute to your account before taxes. For 2025, the annual limits set by the IRS are $4,300 for individual coverage, and $8,550 for family coverage. If you’re age 55 or older (or will turn age 55 during the plan year), you can also contribute an additional $1,000 catch-up contribution. | You can contribute to your account before taxes. You will be able to elect to contribute up to the 2025 IRS limit, which will be at least $3,200. |
| Fund Availability | You can use up to the total amount you have contributed to your HSA. | The total amount of your annual election is available at the beginning of the plan year. |
| Rollovers | Unused dollars roll over from year to year. The funds are always yours to keep, even if you leave the company or retire. | You will be able to roll over up to the 2025 IRS limit, which will be at least $640. |
| Earning Interest | The money in your HSA earns interest. | The money in your FSA does not earn interest. |
| Debit Cards | Yes, a debit card is available. | Yes, a debit card is available. |
| Investment Option | You can open an investment account when your balance reaches $1,000. | You cannot invest your FSA balance. |
Which Account Should I Use
If you enroll in the Bronze, Bronze Plus, or Silver coverage level, you can use an HSA, a Health Care FSA, or both an HSA and Health Care FSA. If you contribute to an:
- HSA or Health Care FSA, you can use your account to pay for qualified medical, dental, and vision expenses.
- HSA and Health Care FSA, your Health Care FSA will be “limited purpose” and can only be used to pay for qualified dental and vision expenses. However, once you meet the medical plan deductible, then it can be used toward qualified medical expenses as well. Your HSA can be used for qualified medical, dental, and vision expenses.
If you enroll in the Gold or Platinum coverage level, you can use the Health Care FSA to pay for qualified medical, dental, and vision expenses.
