What is an FSA or HSA and what are the benefits?Updated 23 days ago

An FSA (Flexible Spending Account) and an HSA (Health Savings Account) are tax-advantaged accounts for medical expenses but differ in key aspects. FSAs, employer-sponsored, allow employees to use pre-tax dollars for medical expenses such as prescriptions and copays, but typically feature a "use-it-or-lose-it" policy where funds must be used within the plan year. HSAs are available to those with a high-deductible health plan and offer more flexibility, allowing funds to roll over annually.