How does an HSA compare to an FSA?
With an HSA, you may contribute up to a pre-determined amount on a tax deductible basis to be set aside in an account. Money not spent is retained and may be invested and can grow from year with no tax liability if it is eventually withdrawn for eligible medical expenses. FSA is a pre-determined amount set aside on a pre-tax salary reduction basis in an account the employee is reimbursed from. Money not spent within the plan year is forfeited.
