A comparison of the two biggest tax-advantaged savings accounts offered by employers
If there was a pop quiz and you were asked to explain the difference between a flexible spending account (FSA) and a health savings account (HSA), would you pass the quiz?
Chances are, you’d probably struggle with the answer. Though they share similar names and some other key similarities, such as both being tax-advantaged options available through work benefits, there are some major differences between the two accounts.
Like any decision, it’s best to make your choice from an informed position. To do so, here are the main takeaways you should know when it comes to the differences between an HSA and an FSA account.