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HSA vs FSA

Wondering how an HSA is different from a Health Care Flexible Spending Account (HFSA)? Here’s how:

Health Savings Account (HSA) Health Care Flexible Spending Account (HFSA)
When to Use You can use the HSA to pay for eligible medical, dental, and vision expenses under the Bronze, Bronze Plus, or Silver coverage levels. You can use the HFSA to pay for eligible medical, dental, and vision expenses under any coverage level.
Contributions You can contribute to your account before taxes. For 2022, the annual limits set by the IRS are $3,650 for individual coverage, and $7,300 for family coverage. If you’re age 55 or older (or will turn age 55 during the plan year), you can also contribute an additional $1,000 catch-up contribution. You can contribute to your account before taxes, up to the 2022 annual limit set by the IRS of $2,850.
Rollovers HSA funds are yours to keep. They can be rolled over year to year and are not forfeited. If you leave Slalom, you can keep your unused HSA funds with Alight Smart-Choice Accounts or transfer them to another HSA, if available. At retirement, you can move any unused HSA funds to another tax-qualified program, such as an IRA. Unused dollars don’t roll over from year to year. If you have an unused HFSA balance at the end of the calendar year, these funds will be forfeited under the IRS’s “use it or lose it” rules.
Earning Interest The money in your HSA earns interest. The money in your HFSA does not earn interest.
Debit Cards Yes, a debit card is available. Yes, a debit card is available.
Investment Option You can open an investment account when your balance reaches $1,000. You cannot invest your HFSA balance.

Which Account Should I Use

If you enroll in one of the qualified high-deductible health plans (which are the Bronze, Bronze Plus, or Silver options offered by any carrier) through the exchange:

  • You are eligible to open an HSA
  • You may also elect to open a Limited Purpose Health Care FSA (LPFSA)
  • You cannot open an HFSA

If you enroll in a traditional health plan (Gold or Platinum) through the exchange:

  • You can open an HFSA
  • You cannot open an HSA or LPFSA

If you participate in a health plan, HSA, or HFSA outside of Slalom—such as through your spouse—your eligibility to participate in the Slalom-sponsored HSA and FSA programs may be impacted. Eligibility may also be impacted by individual tax situations.


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