HSA. FSA. ACA. EOC. PCP.
There are hundreds of acronyms in the health insurance industry, and it’s hard to keep them all straight. You’ve probably heard of HSAs and FSAs before, but only have a vague idea of what they actually entail.
An FSA, or Flexible Savings Account, is an employer-owned account that allows employees to save pre-tax money to pay for out-of-pocket healthcare costs. An HSA, or Health Savings Account, is an employee-owned account used to save pre-tax dollars for health costs.
But those are just the basics. It’s also helpful to know facts about eligibility, contribution limits, and overall benefits and drawbacks of HSAs and FSAs.
And most importantly, you should ask yourself as an employer, “Is this something I should offer my team?” We’ve written before about creating a great place to work, and offering a comprehensive benefits package is part of that bigger picture.
We’ve made a slideshow that will answer the following questions:
Learn the difference between an HSA and an FSA.
- What is the difference between an FSA and HSA?
- Who owns an FSA and who owns an HSA?
- Who is eligible for an FSA?
- Who is eligible for an HSA?
- What are the contribution limits of each?
- What are the biggest benefits and drawbacks of each?
Still have questions? Here are some blog posts that dive more in-depth:
In this blog post, we’ll explore the pros and cons of a health savings account and help employers choose whether it’s the right offering for their employees. That includes topics such as the benefits of an HSA and how to set one up.
The post covers the common features of a flexible spending account, how FSA spending works, the advantages and disadvantages of an FSA, and how to set one up.
Justworks Can Help
If you’re an employer and considering between an HSA or FSA, Justworks offers both and may be able to help. You can learn more about our benefits offerings here. Other questions? Call us at 888-534-1711 or email firstname.lastname@example.org.
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.