WHAT IS THE DIFFERENCE BETWEEN A FLEXIBLE SPENDING ACCOUNT (FSA) AND A HEALTH SAVINGS ACCOUNT (HSA)?
A. A Flexible Spending Account (FSA) is a tax-advantaged financial account set up through the cafeteria plan of an employer. An FSA allows an employee to set aside a portion of his or her earnings to pay for qualified expenses as established in the cafeteria plan, most commonly for medical expenses but often for dependent care or other expenses. Money deducted from an employee’s pay into an FSA is not subject to payroll taxes, resulting in a substantial payroll tax savings. A Health Savings Account (HSA) is a tax-advantaged medical savings account available to taxpayers in the United States who are enrolled in a High Deductible Health Plan (HDHP). The funds contributed to the account are not subject to income tax, but can only be used to pay for qualified medical expenses. For more information on Health Savings Accounts please visit www.hsaplanfinder.com. Q. What is a Medical Reimbursement Account? A. Under this provision, you elect an annual amount to be taken out of your paycheck, pr
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