bookie71: "On most you get the full amount if your expense is in the first month, if you are putting in 100 per month and have a bill of 1200 the first month, the HSA will pay the bill AND you will continue to contribute the 100 per month.

If you terminate employment early, you don't have to repay the difference."

That is how I understand FSA - a flexible spending account - to work. But that does not match my understanding for an HSA.

I agree with JAFO - At my employer the FSA is as bookie71 describes.
An HSA however is not.

It's possible that an employer could contribute to your HSA - however most don't.
The thing that gets emphasized over and over with an HSA is that it is "your money" - ie. you take it with you if you leave the employer.
FSA you don't.


The other downside I'll mention for an HSA is that it's a little extra paperwork at tax time. (I think it's one form sent to you from the HSA provider and one more form/worksheet to fill out) And since most people don't do HSA, I wouldn't entirely trust the "interview mode" for tax software. (I'd check that the form was done right manually before filing.) IIRC I had it screwed up one year because I said the money came from me, but really it came from my employer - although funded out of payroll deductions. The tax software thought I had over-contributed until I found the problem and fixed it.

There are two HSA msg board on TMF - this is the one with more posts:
http://boards.fool.com/health-savings-accounts-114566.aspx?m...