FSA and HSA: What’s the Difference?

Pinellas County offers Flexible Spending Accounts (FSA) and a Health Savings Account (HSA) to provide tax savings that boost your spending power.

• The money is deducted from your paycheck before taxes are calculated and withheld and is deposited into an account to pay for certain expenses.
• You never pay tax on this money. That’s where the savings occurs.

What’s the same?

• Both FSA and HSA offer tax savings.
• Both help you save for qualified medical expenses.
• Both have annual contribution limits.
• Both are available when newly eligible for benefits or during Annual Enrollment in the fall.

What’s different?

• FSAs are available to all employees, while the HSA is available only to those on the Choice Fund Open Access Plus HSA medical plan.
• HSA funds roll over year to year. Some FSA funds carry over to the next year and some are “use it or lose it” (see FSA).
• HSA offers higher contribution limits than FSAs.
• HSA offers investment options; FSA does not.
• FSA monies are no longer available when you leave the County. HSA monies are yours, even if you leave the County or retire.
• You have access to all of your FSA funds at the beginning of the year while HSA funds accumulate as you contribute.

Flexible Spending Account (FSA)

What is an FSA?

A Flexible Spending Account (FSA) allows you to set aside money, on a pre-tax basis, for certain healthcare and dependent care expenses:

• Healthcare FSA money can be used for eligible medical, dental, prescription, and vision expenses such as copays, deductibles, and coinsurances for you and your eligible dependents.
• Limited Purpose FSA money can be used to pay for eligible dental and vision expenses. It can only be used for medical expenses if the deductible is met (Choice Fund Open Access Plus HSA members only).
• Dependent Care FSA money can be used to pay for childcare/eldercare services that make it possible for you and/or your spouse to work. Examples include daycare, summer day camp, sick childcare, and elder day care.

Who is eligible?

All employees are eligible to elect a Healthcare FSA and/or Dependent Care FSA, regardless of whether you are enrolled in a County medical plan. Those enrolled in the Choice Fund Open Access Plus HSA plan would initially have a Limited Purpose FSA as noted above.

When can I sign up?

You can elect an FSA when newly eligible for benefits or during Annual Enrollment.

Who administers FSAs?

The Flexible Spending Accounts are administered by TASC.

What are the FSA contribution limits?

View the current Healthcare FSA contribution limits and Dependent Care contribution limits, set by the IRS.

Does an FSA roll over to the next year?

It depends. For a Dependent Care FSA, you must spend the money during the year or lose it. Some Healthcare FSA funds may be carried over if you have an active Healthcare FSA the following year.

How can I learn more?

See Flexible Spending Account (FSA).

Health Savings Account (HSA)

What is an HSA?

A Health Savings Account (HSA) is a tax-deductible savings account available to individuals enrolled in an IRS-qualified high-deductible health plan. Both you and Pinellas County contribute to the account which may be used for qualified medical expenses such as doctor’s visits, lab tests, medications, and hospital services. While you are employed at Pinellas County, the County contributes to your HSA: $500 for employee only and $1,200 for employee plus one or more.

Who is eligible?

The HSA is only available to employees enrolled in the Choice Fund Open Access Plus HSA medical plan. When you enroll in the plan, Pinellas County automatically opens your account.

When can I sign up?

You can elect an HSA when newly eligible for benefits or during Annual Enrollment.

Who administers HSAs?

Health Savings Accounts are administered by HSA Bank.

What are the HSA contribution limits?

View the current HSA contribution limits. You can change your contribution amount any time throughout the year. There are opportunities for investment if you have a balance of $1,000 or more.

Does an HSA roll over to the next year?

Yes. There is no “use it or lose it” provision. The funds roll over from year to year if not used. You own the account – even if you leave the County or retire.

How can I learn more?

See Health Savings Account.