1. HSAs vs. FSAs: WHICH HAS MORE ADVANTAGES?

2. Some similarities …
You contribute on a pretax basis through payroll deductions …
… that reduces your taxable income
Use the balance to pay for qualified expenses tax free
Convenient debit card makes paying for expenses easy!

3. But some important differences

4. Whose money is it? HSA FSA
You own the HSA … even if you change health plans or leave [Company], the account is yours
Your unused balance rolls over … there’s no use it or lose it rule
You forfeit the balance if you leave [Company]
Potentially It’s use it or lose it … your balance will not roll over

5. Help growing your balance
HSA
FSA
You get free money from [Company] every year you are enrolled in the high-deductible health plan
[$XXX] for employee-only coverage and [$X,XXX] for family coverage
You can make lump-sum deposits at any time
Your family or others can contribute on your behalf
No company contributions
No additional lump-sum deposits

6. How much can you contribute?
Medical coverage elected
IRS MAXIMUM* ANNUAL CONTRIBUTIONS
2018 HSA
2018 FSA
2019 HSA
2019 FSA
If you’re under age 54
If you’re age 55 or older
Any age
If you’re under age 54
Employee-only coverage
$3,450
$4,450
$2,650
$3,500
$4,500
$2,700
Family coverage
$6,900
$7,900
$7,000
$8,000
* Maximum includes any [Company] matching contribution.

7. Spending your money HSA FSA
Use your balance to pay for qualified expenses tax free for …
… yourself and your spouse/dependents even if they are not enrolled in the high-deductible health plan or any other health plan
Use your balance to pay for qualified expenses tax free for …
… yourself and your covered spouse/ dependents only
Remember, use your balance only for qualified expenses or you will be subject to income taxes and a 20% IRS penalty!

8. Enrolling or changing your contributions
HSA
FSA
Open your account at any time
No need to re-enroll each year
Change the amount of your contributions at any time
Re-enroll every year and choose contribution level
No changes unless you experience a qualified life event such as marriage or the birth of a child
Remember, you must open your HSA yourself. If you don’t, you miss out on free money from [Company] and your pretax payroll contributions will have nowhere to call home!