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Flexible Spending Accounts

Know the Difference

You cannot have both a medical FSA and an HSA, unless the FSA is for limited uses such as dental and vision costs. The other major variable is the ability to roll your money over to the next year, which is different from what an HSA allows.

Use It or Lose It

The HSA has an unlimited rollover feature, allowing balances to accrue from year to year. An FSA may have one of two rollover options, but your employer isn’t required to offer either.

It may have a grace period as late as March 15 of the following year to incur qualified expenses, after which the unused balance is forfeited. Or employers may allow participants to roll over up to $500 of their unused FSA balance to the next year, but workers forfeit anything over that amount.

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