FSAs and HSAs

A flexible spending account (FSA) is a special account you put pre-tax money in to pay for medical- and vision-related costs throughout the year. You can contribute a maximum of $2,700, as of 2019, and pay for a variety of things, including copays, glasses, prescription sunglasses and contact lens solution.

Funds for the entire year generally become available on January 1st and expire on December 31st unless your company offers a grace period or rollover of up to $500. You can spend FSA dollars by using an FSA card, similar to a debit card, or by submitting receipts to your plan provider.

A health savings account (HSA) is very similar to an FSA, but you own the funds and can rollover money at the end of the year or if you move to a new employer.