FSA vs HSA: What's the difference?

FSA vs HSA.Or HSA vs FSA. We get asked about that a lot. And understandably so too, as FSA means Flexible Spending Account and HSA (Health Savings Account) are closely related.

Try our newly added iHealth COVID-19 Antigen Rapid Test Kit

Both are tax-saving programs that cut your medical expenses on qualified HSA and FSA-eligible items.

Health Savings vs. Flexible Spending Account

However, there are some significant differences between FSA vs HSA, and understanding the nuances of each account is crucial to maximizing your savings.

At HPFY, our team lists these FSA vs HSA differences in one clear chart for your convenience.





Annual Contribution Limit






Self-employed eligible



Requires HDHP



Childcare eligible



Interest earned               





FSA vs HSA: Understanding the differences

All items of FSA vs HSA difference on the chart are easy to understand.

The HSA contribution range refers to $3600 for an individual and $7200 for a family account. An HSA account, unlike FSA, requires you to have a high deductible health plan (HDHP).

The self-employed can have an FSA but not an HSA account which is employer-provided and earns an interest income. Conversely, childcare is one of the FSA eligible items but not an HSA-eligible one.

No FSA rollover means Use It or Lose It!

As we approach the end of the year, the question of HSA / FSA rollover looms large!

And that is perhaps the most important area of difference: while HSA rolls over into the next year, FSA does not rollover. Your FSA dollars need to be spent by the end of the year – or you lose it.

At HPFY, our FSA store has a range of great FSA eligible items for you to choose and buy from.

Visit FSA Qualified Healthcare Categories to not only not lose your valuable FSA dollar but also use it smartly!

Quick Answers to 5 Top FSA and HSA Questions

1. FSA vs HSA: Are all FSA eligible products also HSA approved?

Yes, as long as they are medically eligible both plans cover approved products.

2. FSA vs HSA: Can I roll over my HSA / FSA account into next year?

Not with FSA as there is no FSA rollover. However, an HSA account can roll over into the next year.

3. FSA vs HSA: Who owns my HSA or FSA account?

An HSA account is owned by the employee whereas an FSA account is technically owned by the employer. Your HSA account can be taken to a new job.

4. FSA vs HSA: Which account is right for me?

It depends. If your employer offers a High Deductible Health Plan (HDHP) an HSA may be more appropriate, but if you need childcare an FSA may be more appropriate.

5. Can I use my FSA to cover childcare and medical expenses?

Sort of. Once you set your FSA up to be a Dependent Care FSA to cover qualified childcare expenses, you can set up a separate FSA for qualified medical purposes depending on your company’s plan.


Disclaimer: All content found on our website, including images, videos, infographics and text were created solely for informational purposes. Our content should never be used for the purpose of diagnosis or treatment of any medical conditions. Content shared on our websites is not meant to be used as a substitute for advice from a certified medical professional. Reliance on the information provided on our website as a basis for patient treatment is solely at your own risk. We urge all our customers to always consult a physician or a certified medical professional before trying or using a new medical product.