HSA vs FSA — What's the Difference?
Both save you money on healthcare with pre-tax dollars, but HSAs are far more flexible — they roll over forever, can be invested, and you own them. FSAs have use-it-or-lose-it rules.
| HSA | FSA | |
|---|---|---|
| Who can use it | Must have HDHP | Any employer plan |
| Who owns the account | You (portable) | Employer (you lose it if you leave) |
| 2026 contribution limit (individual) | $4,300 | $3,300 |
| Rolls over year to year | Yes — forever | Limited ($660 max rollover in 2026) |
| Investment options | Yes — invest like an IRA | No |
| Triple tax advantage | Yes (contribute, grow, spend — all tax-free) | Partial (contribute pre-tax, spend tax-free) |
| Employer can contribute | Yes | Yes |
| Available first day of year | Only what you've contributed | Full annual election upfront |
| Retirement use | After 65, use for any expense (income tax applies) | No |
Bottom line
If you have an HDHP, an HSA is almost always the better choice — it's essentially a tax-advantaged investment account for healthcare. An FSA is useful when your employer offers it alongside a non-HDHP plan.
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