FSA & HSA Accounts

Understanding FSA & HSA Accounts

When it comes to managing your healthcare expenses, Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA) offer invaluable benefits, particularly for optical care. Both FSA and HSA accounts allow you to set aside pre-tax dollars to cover eligible medical expenses, including eye exams, prescription eyeglasses, and contact lenses. There are some key differences, however, between these two types of accounts.

What is FSA?

A Flex Spending Account (FSA) is an employer-sponsored benefit that allows you to contribute a portion of your salary to cover qualified medical expenses. The funds you allocate to your FSA are deducted from your paycheck before taxes, which reduces your taxable income.

How does FSA work

  • Funds are generally “use it or lose it,” which means unused funds are lost at the end of the year or by a carryover period (which is usually March 15th).
  • Funds can be used for eye exams, eyeglasses, prescription sunglasses, and contact lenses.
  • Benefits are pre-taxed.
  • You may use these funds with or without your insurance benefits.

What is HSA?

A Health Savings Account (HSA) is a tax-advantaged savings account designed to help you save money for medical expenses that are not covered by your health insurance plan.

How does HSA work?

  • The funds don’t have a “use it or lose it” rule and can be rolled over from year to year.
  • Funds can be used for eye exams, eyeglasses, prescription sunglasses, and contact lenses.
  • Contributions are pre-taxed.
  • Use with or without your insurance benefits.

Did you know you can use your FSA and HSA dollars on:

• Eyeglasses
• Prescription
• Sunglasses
• Contact Lenses
• Eye Exams

Frequently Asked Questions About FSA/HSA

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