 TITLE: What’s the Difference Between an HSA and an FSA? CONTENT: What Is a Flexible Spending Account (FSA)?\n------------------------------------------\nOnly available through employers that offer them, a flexible spending account is another tax-friendly way to cover certain medical expenses. FSAs extend beyond health care—some employers offer dependent care FSAs to help parents and caregivers reduce child care and elder care costs. Meanwhile, limited-purpose FSAs are geared toward vision and dental care expenses.\nSome FSAs come with a debit card. Others require you to pay upfront, then get reimbursed afterwards. Your company may also contribute to your FSA as an employee benefit.\nNow for the rub—FSA funds usually expire at the end of each plan year. Some employers offer a grace period (usually up to two and a half extra months) to use any remaining funds. Others may let you roll up to $550 into the new plan year. In this way, overfunding your FSA could come back to bite you. However, recent legislation gave employers the option of letting FSA participants roll over 100% of their unused funds from 2020 to 2021, and from 2021 to 2022. END