HSA vs FSA
How's a HSA and FSA similar?
A HSA and a FSA are similar in that they both are tax-exempt; you may make pre-tax contributions to a HSA or FSA. They are both also used for medical expenses.
How's a HSA and FSA different?
A FSA is an employer-established benefit, so is only available through an employer and not available if you’re self-employed. You may, however, open a HSA on your own.
How much to contribute
You must decide at the beginning of the year how much you want to contribute towards your FSA, whereas for a HSA you may contribute however much you’d like under the contribution limit. If you switch jobs or have a change in your marital status or dependents, then you may change your FSA contribution amount.
For 2020, the contribution limit per FSA is $2,750. For a HSA, the limit is $3,550 for individuals and $7,100 for families. If you’re 55 years old or older, you may contribute an additional $1,000.