[Infographic] HSA vs FSA: A Visual Guide for Employees

How do employees choose between an HSA vs. FSA when the employer offers both? Likely by sifting through reading materials or reaching out to HR with questions. Help employees reach that decision faster with this visual side-by-side comparison.

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. Regain precious time spent explaining the HSA and Healthcare FSA. And help employees identify their eligibility and the pros and cons of each benefit.*

HSAvsFSA comparison chart FINAL

HSA vs. Healthcare FSA Infographic

Continue scrolling to view the entire HSA vs. Healthcare FSA infographic. And for helpful links for further reading.

HSA vs FSA infographic 2022 contribution limits

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 annually by the IRS, differ for individuals and families. 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 (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.
  • 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 of $570 (2022) and $610 in 2023 or 2.5 months grace period to spend.
  • Investment Capability: No investment option.

Disclaimer: the content presented in this article are for informational purposes only, and is not, and must not be considered tax, investment, legal, accounting or financial planning advice, nor a recommendation as to a specific course of action. Investors should consult all available information, including fund prospectuses, and consult with appropriate tax, investment, accounting, legal, and accounting professionals, as appropriate, before making any investment or utilizing any financial planning strategy.

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