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Are flexible spending accounts the same as HSAS?

Flexible spending accounts come only as part of a benefits package from an employer — you can't get one on your own — but the medical expenses you can use them for are the same as HSAs. Here's what you should know: Like HSAs, there’s a limit on FSA savings.

What is a Flexible Spending Account (FSA)?

A flexible spending account, or FSA, is a tax-advantaged account offered by your employer that allows you to pay for medical expenses or dependent care. Depending on the extent of your health care or dependent care costs, an FSA can help you save a lot of money on taxes, particularly since the list of eligible expenses has expanded in recent years.

What is the difference between a health savings account and FSA?

Health savings accounts and flexible spending accounts are two benefits offered by some employers that allocate pre-tax dollars towards medical expenses. HSAs and FSAs, while structurally similar, are intended for different purposes and must be used accordingly.

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