What is the main difference between an FSA and an HSA?

What is the main difference between an FSA and an HSA?: With both an HSA and a FSA, account holders make tax-deductible contributions. HSAs are individually owned while FSAs are owned by the employer.

You keep your HSA balance until you spend it and the account belongs to you even if you switch employers or retire. With an FSA, any money in the account at the end of the plan year is forfeited to your employer.; Due to the COVID-19 relief bill signed in December 2020, employers have the option to allow all unused FSA funds to rollover from a 2020 plan into 2021 and from a 2021 plan into 2022. Employers also have the option to allow a 12-month grace period for 2020 and 2021 plans. Check with your employer to determine whether your plan allows either of these options.

Anyone can contribute to your HSA account. An FSA must be funded exclusively through employer contributions or employee pre-tax contributions.