HSA, FSA… why do so many employee benefits sound like alphabet soup?
If you’ve ever nodded through HR meetings pretending to understand these acronyms, you’re not alone. These accounts can actually save you money — but only if you know what they are and how they work.

Let’s break them down in a simple, down-to-earth way.

HSA vs FSA: What’s the Difference?

Both HSAs and FSAs help you pay for health-related expenses using pre-tax money (which saves you money). But they work a little differently, and knowing the difference can help you make the most of your benefits.

1. Health Savings Account (HSA):

An HSA is a special savings account for healthcare expenses — but here’s the key:
you can only have an HSA if you’re enrolled in a High Deductible Health Plan (HDHP). The threshold for what counts as a “high deductible” plan changes every year by the IRS (learn more at HealthCare.gov.)

If your employer offers an HDHP, you likely have access to an HSA.

Why people like HSAs

• Your contributions are pre-tax
• Your money grows tax-free
• Withdrawals for qualified expenses are tax-free
• Your money rolls over year to year
• Your HSA stays with you even if you change jobs

In other words, HSAs offer a triple tax advantage — one of the strongest tax benefits available in any employee benefit (pre-tax dollars go into your HSA, the money grows tax-free, and you don’t pay taxes on withdrawals when used for qualified medical expenses).

Learn more about HSA utilization & limitations at HealthCare.gov.

2. Flexible Spending Account (FSA):

FSAs are also funded with pre-tax dollars (e.g. reducing your taxable income). You can enroll to an FSA if your employer offers one, regardless of what health plan you have.

However, FSAs work differently from HSAs in a few important ways.

What makes FSAs different

• They can be offered with any health plan
• They lower your taxable income
• They’re great for predictable, yearly expenses
• Most FSAs don’t roll over — use it or lose it*

* Some employers offer a small rollover or a grace period, but it varies.

People often use FSAs for:

• Everyday health needs
• Therapy and mental-health support
• Medication
• Copays and office visits

Sometimes, employers who offer a “Health Care” FSA also offer a Dependent-Care FSA, which can be used for childcare — but this is a separate account with different rules.

Learn more about FSA utilization & limitations at HealtCare.gov

How to Check If You Have an HSA or FSA

1. Ask HR or People Operations

This is the fastest route. They’ll tell you:

• Whether your health plan is an HDHP
• Whether you have an HSA or FSA
• Which provider manages your account
• How to log in and check your balance

2. Review your benefits package

Your employee handbook or onboarding materials typically outline:

• “Health Savings Account (HSA)”
• “Flexible Spending Account (FSA)”
• “Pre-tax benefits”

3. Log in to your benefits portal

Most employers have an online portal where you can see:

• Which account you have
• Your balance
• Eligible expenses
• How to submit claims

If you’re not sure where to log in, HR can guide you.

Mental Source Is Here To Help!

Many people are surprised to learn that a wide range of mental-health tools, including therapy, coaching, self-help programs, CBT courses, and even certain digital wellbeing tools – may be eligible for HSA or FSA spending.

Our Primary goal is to help you Understand which mental-health options are eligible, choose tools that fit your life and your budget and make the most of the benefits you already have

Learn more about Mental source.