A Flexible Spending Account (FSA) is a special savings account that lets you set aside pretax money from your paycheck to pay for eligible healthcare expenses. This means you can save on taxes while covering costs like medical bills, prescriptions, and some over-the counter items. FSAs are renewed each year during open enrollment, and some unused funds may not roll over to the next year, so it’s important to plan your contributions wisely!

A Health Savings Account (HSA) is a special savings account that lets you save money for medical expenses. It offers tax benefits, meaning your contributions are tax-deductible, and the money grows tax-free. You can use these funds for qualified health costs, like doctor visits and prescriptions. HSAs are available to people with high-deductible health plans (HDHPs) and can help you save for both current and future healthcare needs.