When a Health Savings Account (HSA) and Healthcare Flexible Spending Account (FSA) are both offered, how does an employee choose which option is best for them? Likely, by sifting through reading material or a prospectus. Or reaching out to HR with their questions.

To reduce the time spent on these tasks, we've gathered 11 key elements to show how the HSA and FSA stack-up against each other.

Download our infographic as a PDF. For employers, regain precious time spent explaining the HSA and Healthcare FSA. For everyone, whether an HR leader or an individual, this graphic can help identify eligibility and select the right benefits.

HSA vs Healthcare FSA Infographic

HSA vs. Healthcare FSA

Health Savings Account (HSA)

Think of an HSA like a 401(k) for healthcare. An HSA can pay for healthcare costs today and for years to come.

• Eligibility: Must be enrolled in an HSA-eligible High Deductible Health Plan.

• Ownership: Owned by the account holder.

• Funded By: Anyone can fund an HSA (employers included).

• Contribution Limit: Set yearly by the IRS and differs for individual and family plans; Age 55+ catch up: $1,000.

• Contribution Selection: Change your contribution amount anytime during the year.

• Tax Advantages: Triple Tax Advantages: Tax-free contributions, distributions, and growth.

• Covered Expenses: IRS-qualified medical, vision, and dental expenses. For the account owner and tax-dependents.

• Funds Availability: As funds are deposited.

• Portability: HSAs are owned by the account holder. Funds are yours for life and never expire.

• Rollover or Grace Period: HSA funds rollover year-to-year and never expire.

• Investment Capability: Yes - Interest and earnings grow tax-free.

Flexible Spending Account (General Purpose or Healthcare FSA)

An employer-provided spending account. Yearly pre-tax funds set aside for eligible healthcare expenses.

• Eligibility: Available only for employees. Not self-employed individuals. Employer health plan enrollment is not required.

• Ownership: Owned by the employer.

• Funded By: Employer and/or employee-funded.

• Contribution Limit: Set annually by the IRS, no higher limit for family plans.

• Contribution Selection: Set annually. Can only change after a Qualifying Life Event.

• Tax Advantages: Contributions and withdrawals for qualified medical expenses are tax-free.

• Covered Expenses: IRS-qualified medical, vision, and dental expenses. For the account owner and tax-dependents.

• Funds Availability: On the first day of the plan year.

• Portability: Forfeited if you change or lose your job. The employer keeps the remaining balance.

• Rollover or Grace Period: If allowed by the employer. Rollover up to the annual IRS carryover limit to the next year or 2.5 months grace period to spend.

• Investment Capability: No investment option.

Download our infographic and keep it handy when comparing options during open enrollment.

Want to work with a flexible benefits provider that makes HSA, FSA, and benefits education easy? Reach out to Lively.