What is the difference between HSAs and FSAs? I may have made the wrong selection and now I can't correct it. I received a 1095-C form from my employer.

[KrisD · Accepted solution]

HSA Health Saving Account

FSA Health Flexible Spending Account

Rules for an HSA can be very complex and the account can be manipulated in many ways, it has some saving similarities to an IRA. The account can carryover year to year. 

An FSA is usually setup through an employer, and allows an employee to contribute pre-tax dollar to the account. Funds in the account can be used to pay for medical needs. This account allows a taxpayer to pay for medical needs with pre-taxed dollars. The funds usually need to be used up within a certain timeframe. 

Please click the link below for more information about HSA and FSA.

If you have additional questions about your 1098-C, please do not hesitate to submit another question through Answer Exchange. That's what we're here for.  

https://www.irs.gov/publications/p969