What is the difference between the new HSAs and traditional flexible-spending accounts?
The biggest and most important difference is that your HSA balances can roll over from year to year and continue to grow tax-deferred. Money in your flex plan must be spent by the end of the plan year or you lose it. Also, you can open a flexible-spending account only if the plan is offered by your employer, and you do not need to have a high-deductible health insurance policy. Note: if your employer offers both plans, you can only participate in one. If I set up an HSA through my employer, what happens if I switch jobs? You can keep the money in an HSA account even after you leave that job, similar to a 401(k). But you will pay a 10% penalty, plus an income-tax bill if you use any of the money for non-medical expenses before age 65. What happens if I want to withdraw the money for non-medical expenses after age 65? You will not have the 10% penalty if you use the money for non-medical expenses after age 65, but you would still have to pay income taxes on the money. Can a couple who is
