HSA vs. FSA - What's the Difference?
As December quickly approaches, the window for making changes to insurance plans is closing. This can be a stressful time of year for a multitude of reasons, but the healthcare debacle hasn't helped lighten the load. While we cannot make your decision for you, we will provide you will some information that should help make your options more clear. We'll start will a common confusion first. HSA vs. FSA Similarities Both the HSA and FSA are both accounts that can reduce your income tax liability by allowing you to pay for medical expenses pre-tax. That means if you're in the 25% tax bracket you could potentially save $2000 on taxes by using one or both of these accounts. It's important to be familiar with how each can be used. Both accounts can cover expenses for your family. Eligible Expenses: Copays and/or Deductibles Qualifying Prescriptions Some Medical Equipment A full list can be found on the IRS website under Publication 502 . Differenc...