What's the Difference Between an FSA and an HSA?
Healthcare is a major burden for Americans of all ages. Thankfully, there are special accounts that allow you to pay for healthcare in a tax-advantaged fashion. Two popular choices in this regard are flexible spending accounts (FSAs) and health savings accounts (HSAs). But while some might confuse the two, they're actually very different.
A flexible spending account lets you allocate pre-tax funds from your earnings to pay for healthcare expenses like doctor visit copays, prescriptions, and medical supplies. The maximum amount you're allowed to put into an FSA changes from year to year, but in 2019, it's $2,700. Contribute the max, and that's $2,700 of earnings the IRS can't tax you on.
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Source Fool.com
