HSA, FSA, What’s the Difference?

Q. My company offers both an FSA and an HSA.  I can’t see that there are any differences.  Help!

A. Yet another in the long list of acronyms meant (I’m sure of this) to confuse employees.  The differences begin with the names.  The spelled out versions are “Flexible Spending Account” and “Health Savings Account.”  There are two huge differences between these plans that I will discuss here to get you started.

I’ve never been a fan of the Flexible Spending Account (FSA) arrangement.  You get to Read more »

I Have My Limits (HSA that is)

Q. I am new to the Health Savings Account world, having elected this option this calendar year.  I am confused about what I can have deducted and what my limits are within this year.  I currently have deducted $4400 and my company has funded $268.  I am over 50, are there any differences in terms of limits?  What are the top limit amounts you can put into your HSA in 2008 and 2009?

A. It would be nice if all pre-tax investment and healthcare alternatives actually made sense.  In the case of the HSA, it is important to remember that there are two parts to these types of plans.  First, there is a high-deductible health plan.  For 2008, your deductible must be at least Read more »