FSA vs HSA Calculator

HSA is almost always better if you qualify (requires HDHP). It's triple tax-advantaged (deductible going in, tax-free growth, tax-free withdrawals for medical), portable, and rolls over indefinitely. FSA wins only if you can't enroll in an HSA-eligible HDHP - its tax savings are similar but funds disappear at year-end (with limited carryover/grace period exceptions).

All else equal, both give the same federal income-tax and FICA break per dollar contributed - the tax savings are identical on the eligible amount. The HSA pulls ahead when you can invest the leftover: that growth is tax-free. The FSA loses value to use-it-or-lose-it risk on anything you don't spend by year-end (above the small rollover or grace period), so its net benefit is lower whenever you over-fund it.

HSA: $4,400 self-only, $8,750 family, plus $1,000 catch-up at age 55+. FSA: $3,400 (estimated for 2026; check IRS announcement). Dependent Care FSA: $7,500 household ($3,750 if MFS) - separate from health FSA. HSA limits are split if both spouses have HSAs but only one is on family HDHP.

Contributions reduce taxable income (federal + FICA if payroll deduction; just federal if direct contribution). Investment growth is tax-free. Qualified medical withdrawals are tax-free at any age. After 65, non-medical withdrawals are taxed at ordinary income rates (like a traditional IRA) but penalty-free - making the HSA arguably the best retirement account for medical-heavy retirees.

Generally no - a regular health FSA disqualifies you from HSA contributions. However, you can pair an HSA with a Limited Purpose FSA (dental and vision only) or a Post-Deductible FSA. Dependent Care FSAs can be combined with an HSA freely - different account purposes. If your employer offers both, ask HR which combinations are permitted under your plan.

Yes. You must be enrolled in a qualifying high-deductible health plan (HDHP) that meets the 2026 IRS minimums: a deductible of at least $1,700 self-only / $3,400 family. Without an HDHP you cannot contribute to an HSA, even if you already have one open.

Yes. Once your balance clears an administrator minimum (typically $1,000-$2,000), you can invest the rest in mutual funds or ETFs like a retirement account. The growth is tax-free as long as you use it for qualified medical expenses, at any time.

You forfeit any leftover balance when you leave the employer. Some plans allow a COBRA-style continuation through the end of the year, but an FSA generally is not portable. An HSA, by contrast, belongs to you and moves with you between jobs.

Both accounts cover IRS-qualified medical expenses: doctor visits, prescriptions, dental, vision, therapy, and many over-the-counter products since 2020 (pain relievers, contraceptives, menstrual care). A Dependent Care FSA is separate and covers only childcare and elder care.