How is an HSA different from the other types of medical spending accounts my employer offers?
HSAs are owned by the accountholder. Unlike other types of medical spending accounts, such as Flexible Spending Accounts (FSAs), HSAs are not tied to your employer. Even though your employer may offer an HSA as part of your benefits package and may contribute to your HSA on your behalf, all of the money in your HSA belongs to you as soon as it is in the account. If you move to a different employer, you keep the money. Your employer does not have to approve your purchases. You can keep your HSA if you switch health insurance plans. Even if you switch to a health insurance plan that is not a High Deductible Health Plan, you still keep the money in your HSA and can still purchase qualifying medical expenses without being taxed. However, you cannot contribute to your HSA in any year in which you are not enrolled in a High Deductible Health Plan.
