Home Infographic Infographic: What's The Difference Between...

Infographic: What’s The Difference Between An FSA And An HSA?

Navigating the world of health insurance is never easy. When it comes to vision and dental expenses, which aren’t always covered by health insurance, things can get quickly become expensive.

A specialized savings account can help you save money, and pay those extra expenses like your next pair of glasses.

HSA vs. FSA ─ what’s the Difference?

If you sign up for a high deductible healthcare plan you’ll be eligible for a health savings account, or HSA. This type of account lets you put money aside for health expenses from your pre-tax income, and you never have to pay taxes on withdrawals or earned interest.

Because these accounts are paired with a HDHP insurance plan, your monthly premiums will be lower, giving you savings you can invest in your HSA for future medical expenses.

Not everyone qualifies for an HSA, but a flexible spending account, or FSA is available to anyone. FSAs get the same tax breaks as HSA accounts do, but they don’t earn interest, and have an annual contribution limit.

Your monthly contribution can only be changed at open enrollment or when you change your health insurance. But unlike an HSA, funds saved in a FSA don’t stay with you.

Choosing the Best Plan

Both HSA and FSA have drawbacks that needs to be considered when selecting your insurance. When you put money into an HSA, the funds carryover year-to-year and can be take with you to another job, or into retirement.

An FSA limits the funds that carryover and anything over the limit expires at the end of the year, or when you change jobs. Some FSAs can be used for any health expenses, while others are limited to vision and dental care.

HSAs, on the other hand, require a high deductible insurance plan that could mean much higher medical costs, especially if you need frequent medical care or have a major accident.

Some HSAs have a monthly charge or per-transaction fee, so be careful to read the fine print before you sign up. And of course, these plans will charge you penalties if you spend funds on anything other than healthcare.

Getting Started

Once you talk to your employer about the options they offer (your company might even make contribution to your account), decide which option is best for you. If you generally have low monthly healthcare costs, opting for a high deductible plan with an HSA can save you money long-term.

If your monthly healthcare costs are higher, a lower deductible insurance plan and FSA may be the better option. Either way, it’s important to weight the various costs and benefits before selecting the plan that works best for you.

If you choose an HSA, your funds can be invested in mutual funds, stocks, or bonds for added benefit. You might also consider transferring money from your IRA to an HSA to save on taxes.

Whichever account you choose it’s essential to keep good record to prove your spending was only on qualified medical expenses. Learn more from this infographic.

FSA And HSA

Brian Wallacehttp://nowsourcing.com
Brian Wallace is the Founder and President of NowSourcing, an industry leading infographic design agency , based in Louisville, KY and Cincinnati, OH which works with companies that range from startups to Fortune 500s. Brian also runs #LinkedInLocal events nationwide, hosts the Next Action Podcast, and has been named a Google Small Business Advisor for 2016-2018.

Trending Posts

Reasons Why You Are Aging Too Fast

Ever wonder why people think you look older than your age? You not only look older, but you also feel old. You find yourself...
- Advertisement -

Anklet Charms and Hot Wives What Do They Mean?

Women all over the world love to accessorise. From putting on necklaces to wearing makeup and buying the latest trending clothes, women are ready...

Eating Vaginal Discharge and It’s Health Benefits

For many people, vaginal discharge is a sign that a woman is ready and willing to have sex. Vaginal fluid is a whitish fluid...

Skin Rashes: Causes, Symptoms and Effective Home Remedies

Skin rashes are common skin problems experienced by millions of people worldwide; it is characterized by a visible change in the color and texture...

A Few Reasons Why Its OK to Go Braless

Having a bra on for long hours is one of the most uncomfortable things that a lady has to deal with almost every day....

Genital Warts: Do They Go Away Naturally? What to Expect?

Human Papilloma Virus is the causative organism for genital warts. The virus is available in various strains, and it can be contacted by many...

Spider Bites: Symptoms, Treatment & Identification

Spider bites in the United States are often annoying but they are rarely fatal. If a person gets bitten by a black widow spider...

Trypophobia (Fear of Holes) – Symptoms, Causes, and Treatments

Trypophobia (Fear of Holes) is defined as a condition whereby individuals experience an aversion or fear to clusters of tiny holes.This condition is triggered...

Kinky Sex Punishment Ideas You Should Try

Is your submissive being a spoilt little brat? Are you noticing some unwanted behaviour? Do not be dismayed. Sometimes subs can be naughty, and...

Friends

Stay Connected

Get our Wellness newsletter

Nurture yourself with health tips, wellness advice, and more.

Related Posts

Infographic: the Power of Trusting Your Intuition

Intuition is a natural, thoughtless process and one of the more mysterious levels of thinking. Some would call it just a simple gut feeling...

Infographic: Are Humans Creating The End Of The World?

With the growth of artificial intelligence, superbugs, and worsening climate change, one can’t help but wonder what’s the greatest threat to humanity? Robot Revolution The manufacturing...

Infographic: How Can Big Companies Help The Disadvantaged?

According to the last census, 43.1 Americans are living in poverty. Chronic stress from poverty can alter brain function and lead to serious health...

Infographic: Adding Hollywood Style to Your Look When You Need Glasses

According to the Centers for Disease Control and Prevention (CDC), 14 million American have problems with their vision and 79% of them would see...

Infographic: Healthy Diets In Quarantine

Around the world, people are being asked to stay home to stop the spread of COVID-19. It’s not easy to do - people need...
- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here