FSA vs HSA: Which Is Right for Your Employees?

Both FSAs and HSAs help employees save on healthcare costs with pre-tax dollars, but they work differently.

Key Differences

Eligibility: HSAs require enrollment in a high-deductible health plan (HDHP). FSAs are available with any health plan.

Rollover: HSA funds roll over indefinitely. FSAs are use-it-or-lose-it, though employers may offer a grace period or $640 carryover.

Access: FSAs provide full annual election on day one. HSAs are funded as contributions are made.

Which Should Employers Offer?

Many employers offer both — an HSA paired with an HDHP, plus an FSA option for employees on traditional plans. NBS can administer both and help your team understand their options.