HSAs vs. FSAs: WHICH HAS MORE ADVANTAGES?

Some similarities … You contribute on a pretax basis through payroll deductions … … that reduces your taxable income Use the balance to pay for qualified expenses tax free Convenient debit card makes paying for expenses easy!

But some important differences

Whose money is it? HSA FSA You own the HSA … even if you change health plans or leave [Company], the account is yours Your unused balance rolls over … there’s no use it or lose it rule You forfeit the balance if you leave [Company] Potentially It’s use it or lose it … your balance will not roll over

Help growing your balance HSA FSA You get free money from [Company] every year you are enrolled in the high-deductible health plan [$XXX] for employee-only coverage and [$X,XXX] for family coverage You can make lump-sum deposits at any time Your family or others can contribute on your behalf No company contributions No additional lump-sum deposits

How much can you contribute? Medical coverage elected   IRS MAXIMUM* ANNUAL CONTRIBUTIONS 2018 HSA 2018 FSA 2019 HSA 2019 FSA If you’re under age 54 If you’re age 55 or older Any age If you’re under age 54 Employee-only coverage $3,450 $4,450 $2,650 $3,500 $4,500 $2,700 Family coverage $6,900 $7,900 $7,000 $8,000 * Maximum includes any [Company] matching contribution.

Spending your money HSA FSA Use your balance to pay for qualified expenses tax free for … … yourself and your spouse/dependents even if they are not enrolled in the high-deductible health plan or any other health plan Use your balance to pay for qualified expenses tax free for … … yourself and your covered spouse/ dependents only Remember, use your balance only for qualified expenses or you will be subject to income taxes and a 20% IRS penalty!

Enrolling or changing your contributions HSA FSA Open your account at any time No need to re-enroll each year Change the amount of your contributions at any time Re-enroll every year and choose contribution level No changes unless you experience a qualified life event such as marriage or the birth of a child Remember, you must open your HSA yourself. If you don’t, you miss out on free money from [Company] and your pretax payroll contributions will have nowhere to call home!