HSA/FSA Basics: How Pre-Tax Funds Work

HSA and FSA accounts let you set aside pre-tax dollars for eligible healthcare expenses. Using pre-tax funds can increase your purchasing power compared to paying with post-tax income.

What are HSA and FSA accounts?

• HSA (Health Savings Account): A savings account for qualified medical expenses.
• FSA (Flexible Spending Account): An employer-sponsored account that can reimburse eligible expenses.

When should I use my HSA/FSA dollars?

You can use HSA/FSA dollars year-round, but many FSA funds expire at the end of the year (plan rules vary).

What are the HSA and FSA contribution limits?

Contribution limits are set by the IRS and can change over time.

Common questions

How does using an HSA/FSA save money?

Because HSA/FSA dollars are typically pre-tax, you may save compared to paying with post-tax income.

I don’t have enough funds for the full amount. Can I still use HSA/FSA?

Many administrators allow partial reimbursement (plan rules vary).