Choosing between an HSA and an FSA can feel confusing. In most cases, your medical plan decides which one you can use. Here's how it works.
An HSA (Health Savings Account) is only available if you enroll in a High Deductible Health Plan (HDHP). The money in your HSA rolls over every year, and it stays with you even if you leave your job.
An FSA (Flexible Spending Account) is available if your employer offers one. Your employer's plan decides whether any unused FSA money carries over or whether you get a grace period, so check with your HR team to see what applies to you.
If you enroll in an HDHP and open an HSA, you can't also have a standard health FSA. Some employers offer a Limited-Purpose FSA (LPFSA) that works alongside an HSA for dental and vision expenses. Ask your HR team whether your employer offers one.
Here's how to decide:
- Open your recommendations in Nayya Choose and use the left-hand panel to go to Medical. This shows which medical plan we recommend for you.
- If the recommended plan is an HDHP, an HSA is your option for tax-advantaged healthcare savings.
- If the recommended plan isn't an HDHP, a health FSA is your option, if your employer offers one.
- Use the left-hand panel to go to Spending Accounts and see what we recommend for your situation.
Nayya recommends, but we don't enroll you or change your contributions. To sign up for a plan or spending account, use the link to your benefits administration system in Nayya Choose.
For questions about your account, like how to access your card, whether your employer offers a match, or which expenses are eligible, contact your HSA or FSA provider. You can also ask your HR team if they have a resource to review. If you'd like help deciding what's right for your finances, a benefits or tax adviser can help.