Core Insights - Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs) allow individuals to save for eligible medical expenses using pre-tax dollars, but generally, one cannot have both types of accounts simultaneously [1][3] HSA Overview - HSAs require a high-deductible health plan (HDHP) for eligibility, which typically involves higher upfront costs before insurance coverage begins [4] - For tax year 2025, individuals can contribute up to $4,300 and families up to $8,550, with an additional $1,000 catch-up contribution allowed for those aged 55 to 65 [5] - For tax year 2026, contribution limits increase to $4,400 for individuals and $8,750 for families [6] - HSA funds roll over year to year and can earn tax-free interest, with potential investment options available once a savings threshold is met [7] FSA Overview - FSAs are only available through employers and are not accessible to self-employed individuals, with eligibility typically not dependent on the health plan [8] - The individual annual contribution limit for FSAs is $3,300 for tax year 2025, allowing a total of $6,600 for married couples filing jointly [9] - FSA funds do not roll over; they must be used within the year or will be forfeited, although employers may offer a grace period or carryover options [10] Comparison of HSA and FSA - HSAs are more suitable for generally healthy individuals who can manage higher deductibles, while FSAs are better for those expecting near-term medical expenses [11][12][13] - Individuals should assess their health insurance premiums, deductibles, and anticipated medical expenses to determine which account is more beneficial for their situation [16]