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HSA vs FSA

HSA or FSA? Pick the winner at open enrollment.

See tax savings, employer match, and decades of tax-free growth from an HSA vs. the use-it-or-lose-it FSA.

HSA

wins by

$111,390

Your plan & spending

Head-to-head

HSA tax savings

$996

FSA tax savings

$792

Employer HSA

$500

HSA future value

$110,686

FSA forfeiture risk

$0

Total HSA value

$112,182

Total FSA value

$792

Freedom Coach™

HSA wins by $111,390 — triple tax advantage matters.

HSA saves $996 in taxes now, $500 in employer match, and grows to $110,686 at retirement.

  • Pay medical bills out of pocket if you can — let HSA grow tax-free until 65.
  • Max the HSA first. It's the only triple-tax-advantaged account: deductible in, tax-free growth, tax-free out for medical.
  • Great — you're investing the balance. After 65 it works like a Traditional IRA (taxed but no penalty).

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Save side-by-side plan year scenarios and project HSA compounding at retirement.

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Frequently asked questions

HSA vs FSA — what's the real difference?

HSA: rollover forever, invest, portable. FSA: use-it-or-lose-it, no investing, dies when you leave the job. HSA requires an HDHP; FSA works with any plan.

Why is HSA called triple-tax-advantaged?

1) Deductible contributions, 2) tax-free growth if invested, 3) tax-free withdrawals for qualified medical expenses. No other account has all three.

Should I use HSA money now or let it grow?

Let it grow. Pay medical bills from a taxable account and save receipts — you can reimburse yourself years later, tax-free, giving decades of untaxed growth.

What if I never need the HSA for medical?

After 65 you can withdraw for anything (taxed like a Traditional IRA). Before 65, non-medical withdrawals hit a 20% penalty + tax.

Can I have both HSA and FSA?

Not a general FSA. But a Limited-Purpose FSA (dental/vision only) can pair with an HSA to stack tax savings.

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