Both, of course! Whether you should go with an FSA or an HSA depends on your situation. Only those who are offered one as an employee benefit can have an FSA. As an FSA member, Maxine can get medical … Also excluded is anyone on Medicare, and anyone who’s claimed as a dependent on someone else’s tax return. A Health Savings Account (HSA) is an investment account available only to members who are enrolled in a High Deductible Health Plan (HDHP) under the Federal Employees Health Benefits (FEHB) Program… The only way to keep the FSA is if you have COBRA coverage allowing it. The HSA belongs to you and follows you, even if it was employer-provided. A health FSA, also called a flexible spending account or flexible spending arrangement, is a tax-advantaged savings account, typically funded by pretax salary reductions, from which … The truth is that both accounts work really well when paired with an HDHP, because they let you save on health insurance premiums. The money deposited in FSA can be used … Access your personnel information and process HR actions through these systems. Enrollment in FSA is only available during open enrollment or within 60 days of hire/qualifying event. | Wherever you land on that, you won’t be able to adjust contributions again until your employer’s next open enrollment. Health Savings Account Health Care Spending Account; You must enroll in a High Deductible Health Plan to contribute to a Health Savings Account. Absolutely! The main difference is that self-employed individuals can’t get FSAs, but there are a few other … The key difference isn't … FSA funds have an annual expiration date, but HSAs’ benefits grow with you over time… The money itself. The funds are yours to keep whether you change plans, leave Federal service, or retire. Self … We know having an HDHP and paying more out of pocket before the insurance kicks in might sound unappealing, but it does mean lower premiums. No one else claim you as a dependent. | That would be awesome! On the other hand, (and depending on what Baby Step you're on), the opportunity to grow your investments inside an HSA and roll them over for as long as you want is an incredible way to make progress on both health and retirement goals at the same time. An HSA isn’t the only type of savings account you can open with a healthcare insurance plan. You also have the option to make pre-tax contributions to the account. The process may feel overwhelming, … The tax benefits can be substantial. You can open your HSA today and start saving for qualified medical costs. So, having an HSA allows you to: It’s a tax-free triple whammy! Depending on the kind of health insurance plan you have and the benefits your employer offers, you might be eligible for a health savings account (HSA) or a flexible spending account (FSA). Health Savings Account Basics Health savings accounts are tax-friendly savings accounts that are paired with high-deductible health insurance plans. (So, no, your therapeutic golf club membership still doesn’t qualify.). So if you don’t go to the doctor much, you’re probably good with that higher deductible and those sweet premium savings. Underfunding it a bit heads that possibility off (while still getting you some tax savings). We’re going to help you understand all the differences between them here. Not only can you use your gross pay to contribute to an HSA before the government gets its cut, you’ll also avoid any taxes when you spend from one! To recruit and retain a highly skilled and diverse workforce for the NIH. Show, Advertising So, what if there was such a thing as tax-advantaged accounts that save you money and help you cover health care costs? As great as it is to have an HSA, it’s important to keep this in mind: Nobody can open one without also having a high deductible health plan (HDHP). If your question requires an immediate response, please use the Contact Us form. Insurance. Can you adjust how much you’re contributing at any time? You can invest it, and any growth is tax-free. Now, Be a Part of It’s important to remember that unlike … Like an FSA, employees set aside … HSAs and FSAs are tools that you can use to hit two main objectives: saving up for health care costs and sheltering your money from taxes. If that’s you, there are no other requirements to open one. FSA is flexible savings account which is a type of health saving account or health insurance plan with tax free benefits to the account holder. Find out about insurance programs, pay types, leave options, and retirement planning. FSA- vs. HSA-eligible expenses. Another option is to open one through a bank or vendor. The self-employed need not apply. ... to those who have the money to allocate to it and needs over the course of a year to make it worthwhile and realize savings…