WINCHESTER, Ky. (LEX 18) — Time is running out to spend your Flexible Savings Account (FSA) dollars - they expire Dec. 31 at midnight.
FSA's are different than a Health Savings Account (HSA). The biggest difference is FSA's are use or lost, meaning, once the new year starts, the funds are gone. HSA's roll over.
Both accounts are used to buy health care products.
"The best things to purchase are over the counter medicines that you can use now or later in the year, things that you may need like cough and cold, allergy medicine, and sunscreens," said Jamie Ferrell, a pharmacist at HCA Pharmacy in Winchester.
He said you can also buy things like test strips for blood sugar levels and blood pressure cuffs. Ferrell said it can be plan specific, so check to make sure you're covered. You can also use both accounts to pay for doctors visits.
A few other key differences between HSA's and FSA's include:
- Eligibility - HSA's require enrollment in a high deductible health plan, while FSA's are available through most employers.
- Ownership - HSA's are owned by an individual, while FSA's are associated with an employer.
- Access to funds - FSA funds are immediately available, while HSA dollars are only available after they are deposited to the employee's account.
- Interest - HSA's earn interest, FSA's do not.
- Withdrawals - HSA funds can be withdrawn for any reason with taxes and penalties, FSA is for health purposes only.
