 TITLE: What’s the Difference Between an HSA and an FSA? CONTENT: What Is a Health Savings Account?\n---------------------------------\nYou can use an HSA to pay for qualified medical expenses that are excluded by your health insurance plan, like copayments, deductibles and coinsurance. The list of what you can purchase with HSA funds is wide-reaching and includes birth control, first-aid supplies and many over-the-counter medications. An HSA's tax benefits can also help save you money.\n*   Your HSA contributions are tax-deductible.\n*   Withdrawals made for qualified expenses are tax-free.\n*   HSAs can be structured as investment accounts that allow for tax-free growth.\nOnce you turn 65, you can use HSA funds for anything you like without being penalized. (Prior to this age, you'll get hit with a 20% penalty if you use it for non-qualified expenses.) However, you'll still be taxed on these withdrawals.\nHSAs are often available as an employee benefit. Your employer might even contribute to your account. You can also open one independently through an authorized credit union, bank or other organization that manages individual retirement accounts (IRAs). HSAs usually come attached to a debit card for easy use.\nTo qualify, you can't be enrolled in Medicare or have anyone else claim you as a dependent. Other eligibility requirements include:\n*   **You must have a high-deductible health plan.** For 2021, a high-deductible health plan has a minimum deductible of $1,400 for individuals; $2,800 for families.\n*   **You can't have additional health coverage.** Special coverages such as long-term care, dental and disability are allowed. END