What Is The Main Difference In FSA Vs HSA?

[AccountsEra0]

Can someone explain the main differences in FSA Vs HSA? From what I understand, both accounts can be used for qualified medical expenses and can offer tax benefits. However, an FSA is an employer-sponsored benefit, while an HSA is available to people who meet specific eligibility requirements, including having an HSA-qualified HDHP. HSA funds generally roll over from year to year and remain with the account holder when changing jobs. FSA rules can be more restrictive, with some plans having use-it-or-lose-it provisions, carryovers, or grace periods. These differences seem important when choosing a healthcare account.