Quick Answer: Both let you use pre-tax dollars for medical expenses, but an HSA is yours forever (rolls over, portable, investable) while an FSA is employer-tied with a "use it or lose it" rule. HSAs require a High Deductible Health Plan; FSAs don't. Both work with Crates Health.
Side-by-Side Comparison
Feature | HSA | FSA |
Who owns it | You - forever | Your employer |
Rolls over? | Yes, indefinitely | Limited or not at all |
Portable between jobs? | Yes | No |
Can you invest it? | Yes (tax-free growth) | No |
Requires special health plan? | Yes (HDHP) | No |
2026 contribution limit | $4,400 individual / $8,750 family | $3,400 |
Full balance available Day 1? | No (only what you've deposited) | Yes |
Tax benefit | Triple tax advantage | Pre-tax contributions + tax-free spending |
Contribution changes | Anytime during the year | Only during open enrollment |
Reimbursement deadline | No deadline - reimburse anytime | Within plan year (+ grace period) |
The Big Differences That Matter
1. Use It or Lose It
HSA: Your money stays forever. You can save it, invest it, and let it grow for decades. FSA: You generally need to spend it within the plan year. Some employers offer a grace period (2.5 months) or carryover (up to $680 in 2026), but anything beyond that is forfeited.
2. Ownership and Portability
HSA: It's YOUR account. Change jobs, retire, become self-employed - your HSA comes with you. FSA: It's tied to your employer. Leave your job and you generally lose unspent funds.
3. Investment Potential
HSA: You can invest your funds in stocks, mutual funds, and ETFs. Earnings grow tax-free. Many financial advisors consider HSAs the best retirement savings tool available. FSA: No investment option. Money sits as cash.
4. Eligibility
HSA: You MUST have a High Deductible Health Plan (HDHP). Can't be on Medicare. Can't be claimed as a dependent. FSA: Just need an employer who offers it. Works with any health plan.
Which One Do I Have?
Not sure? Here's how to find out:
Check your pay stub - Look for "HSA" or "FSA" deductions
Check your benefits portal - Log into your employer's benefits website
Check your cards — HSA debit cards usually say the HSA admin name (HealthEquity, Optum, Fidelity, etc.). FSA cards may say your employer or a third-party admin.
Ask HR - Your human resources department can confirm what you're enrolled in
Can I Have Both?
Generally, no - you can't have both a regular HSA and a regular Health Care FSA at the same time.
But there's an exception: You CAN have an HSA alongside a Limited Purpose FSA (LPFSA), which only covers dental and vision expenses. This lets you save your HSA dollars for bigger medical expenses while using the LPFSA for routine dental and vision costs.
Which Is Better for Crates Health?
Both work great! Crates helps you use either HSA or FSA funds for eligible wellness products. The process is the same:
Get your LMN through Crates
Make your purchase
Submit for reimbursement
The main difference is timing: - HSA users can take their time - there's no deadline to reimburse - FSA users should plan purchases within their plan year to avoid losing funds
Pro tip for FSA users: If you have money left in your FSA toward the end of the year, don't let it go to waste! Use Crates to spend it on wellness products you actually want.
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